Trade benefits a country by A) increasing available consumption choices

Economics Nov 07, 2020

Trade benefits a country by A) increasing available consumption choices. B) reducing the relative price of the exported good. C) increasing the wage rate. D) increasing the real income of all resource owners. E) reducing the need for specialization in production.

Expert Solution

(A) increasing available consumption choices

Increase in export and import consumer have more alternative and consumer choose best alternative

Expanding product variety available to consumer

Trade increase competition and lower world prices, which provide benefit to consumer by raising the purchasing power of their own income, and leads a rise in consumer surplus.

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