Question

Trade between countries leads to

A. reduced labor productivity.
B. high unemployment in all trading partners.
C. higher product prices.
D. higher standards of living.

Answer 1

Trade leads to a higher standard of living.

Imagine if country A had a surplus of coffee beans and country B of tea leaves.

Then they could trade with each other and the citizens of both could have access to both goods; and without trade they would only have access to one good.