The figure given below represents the PPC in two nations

Question

The figure given below represents the PPC in two nations - Germany and Korea, producing only two goods, cars and food.Figure 2.4
 
-Free trade leads to an overall improvement in the standard of living in a country because everything is produced at the lowest possible cost.

Quizplus · Accepted Answer

Free trade allows countries to specialize in producing goods that they can produce more efficiently and at a lower cost, leading to increased productivity and economic growth. This can lead to lower prices for goods, increased competition, and higher living standards for consumers.