Question

In general, a nation can enjoy a higher standard of living by ________ than by being self-sufficient. a. producing on the PPF curve b. taxing imported goods c. specializing and trading d. avoiding trade with other nations e. increasing its versatility

Answer 1

Answer:

c. specializing and trading

Explanation:

Specialization in certain products that the country maintains a competitive advantage in production over another country increases production efficiency. In this sense, the country can impose what it is least efficient at producing. Thus, specialization and negotiation with other countries lead the countries to raise the standard of living, with a higher level and diversification of consumption.