Suppose that a country that has a high level of output per person agrees to trade with a country that has a low level of output per person.Which country can benefit?
A)only the one with a low level of output per person.
B)only the one with a high level of output per person.
C)both
D)neither

Question

Quizplus · Accepted Answer

Both countries can benefit from trade. The country with a high level of output per person can export their surplus goods to the country with a low level of output per person, earning revenue and diversifying their customer base. The country with a low level of output per person can import these goods at a lower cost than producing them domestically, allowing them to free up resources and invest in other areas of their economy. Thus, both countries can potentially increase their overall economic welfare through trade.

Suppose That a Country That Has a High Level of Output