Answered

4. A country's consumption can be greater than its production
O A. Under all circumstances.
OB. Under no circumstances.
OC. When the economy does not engage in trade.
OD. When it chooses to specialize and trade.



Answer :

GinnyAnswer
The correct answer is: OD. When it chooses to specialize and trade. Explanation: 1. When a country decides to specialize in producing certain goods or services in which it has a comparative advantage, it can increase its overall production efficiency. 2. By engaging in international trade, the country can then trade the excess production of goods or services it specializes in for those that it does not produce efficiently. 3. This allows the country to consume more than it produces by trading for goods and services that it lacks comparative advantage in producing. 4. Therefore, when a country chooses to specialize in certain areas and participates in trade, its consumption can indeed be greater than its production.

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