In general,a nation can enjoy a higher standard of living by ________ than by being self-sufficient.

Question

Quizplus · Accepted Answer

By specializing in producing goods and services in which the nation has a comparative advantage and trading with other nations, a nation can access a greater variety of goods and services at lower prices. This increases the overall standard of living because individuals and firms have more resources available to them and can consume and produce more efficiently. Avoiding trade or taxing imported goods would limit access to products and resources, and producing on the PPF curve would only allow for the production of a limited range of goods and services. Increasing versatility is not a specific strategy for improving a nation's standard of living.

In General,a Nation Can Enjoy a Higher Standard of Living