Question

2) When two or more nations engage in free trade, how is the standard of living improved in the participating countries? A) goods become cheaper, demand rises, and output increases B) goods become cheaper, demand lowers, and output decreases C) goods become more expensive, demand rise, and output increases D) goods become more expensive, demand lowers, and output decreases

Answer 1

A) goods become cheaper, demand rises, and output increases

Step-by-step explanation:

Because of the free trade between the two countries, the price of the goods lowers which will raise the demand for goods being traded. If these goods traded are used for production, there would be increased output.