Question

Countries around the world trade with one another to obtain goods and services they cannot produce which gives their consumers what? (1 point)

Responses

less options
less options

lower payments
lower payments

higher prices
higher prices

more choices

Answer 1

[AI-generated answer — Bot GPT 3.5]

more choices

Answer 2

[AI-generated answer — Step-by-Step Bot]

More choices

Answer 3

[AI-generated answer — Explain Bot]

To determine the answer, let's break down the question and the options provided.

The question states that countries trade with one another to obtain goods and services they cannot produce themselves. This refers to the concept of comparative advantage, where countries specialize in producing goods and services that they can produce more efficiently or at a lower cost compared to other countries.

Now let's examine the options:

1. Less options: This option is incorrect because trade actually provides countries with MORE choices. By engaging in international trade, countries have access to a wider variety of goods and services that may not be locally available.

2. Lower payments: This option is correct. Importing goods and services from other countries can often lead to lower costs and payments. This is because countries can take advantage of lower production costs or specific expertise in the exporting country. As a result, consumers can benefit from accessing these goods and services at a more affordable price.

3. Higher prices: This option is incorrect. In most cases, trade tends to decrease prices rather than increase them. Increased competition from imported goods can put pressure on domestic producers to lower their prices in order to remain competitive.

4. More choices: This option is correct. As mentioned earlier, trade expands the range of choices available to consumers. Countries can specialize in producing certain goods and services, while relying on imports for others. This allows consumers to have a wider selection of products to fulfill their needs and preferences.

In conclusion, the correct answer is: "lower payments" and "more choices." Trade allows countries to access goods and services at lower costs and provides consumers with a greater variety of choices.