People trade because

Question

Quizplus · Accepted Answer

People trade because it makes them better off. They engage in trade to obtain goods and services that they desire, but may not be able to produce themselves or obtain at a lower cost. Through trade, individuals can specialize in producing goods and services in which they have a comparative advantage, resulting in increased efficiency and economic growth. While some individuals may try to take advantage of others in trade, this is not the primary motivation for engaging in trade. Moreover, government regulation of the market may have an impact on trade, but it is not the primary driver for individuals to engage in trade. Finally, trade is not a must-do activity, as individuals may choose not to participate in trade if they so desire.

People Trade Because