Question

Why do goods produced through voluntary trade often have lower prices?
7 points
A. They are produced in limited quantities
B. They are made using less expensive resources in other countries
C. They are taxed at higher rates
D. They require more labor to produce

Answer 1

Goods produced through voluntary trade often have lower prices primarily due to the following reason:

**B. They are made using less expensive resources in other countries.**

This option reflects the idea that voluntary trade allows countries to specialize in the production of goods where they have a comparative advantage, often resulting in lower production costs due to cheaper labor or resources in other countries.

The other options do not generally describe factors that lead to lower prices:

- **A** (They are produced in limited quantities) may lead to higher prices due to scarcity.
- **C** (They are taxed at higher rates) would typically increase prices rather than lower them.
- **D** (They require more labor to produce) would likely raise costs and therefore prices.

Thus, option B is the most accurate in explaining why goods produced through voluntary trade can have lower prices.