Suppose Country A has a high average wage level and a high level of output per person,while Country B has a low average wage level and a low level of output per person.Which country can benefit from trade?
A)Only Country A can benefit.
B)Only Country B can benefit.
C)Both Country A and Country B can benefit.
D)Neither Country A nor Country B can benefit.

Question

Quizplus · Accepted Answer

Country A can benefit from trade by selling its goods and services abroad at a higher price than it would domestically, thereby increasing its revenue and potentially creating more job opportunities. At the same time, Country B can benefit from trade by importing goods and services from Country A that it cannot produce efficiently itself, thereby increasing its overall output and potentially improving its standard of living. Trade can create opportunities for both high-wage and low-wage countries to specialize in the goods and services they produce most efficiently and thereby increase overall production and consumption.

Suppose Country a Has a High Average Wage Level and a High