How does voluntary trade help the economy?

Question

A it sets extremely high prices on imports
B it puts strict trade barriers in place
C it involves too many government regulations
D it encourages specialization witch means more profit

Answer 1

D it encourages specialization which means more profit.

Voluntary trade allows individuals and businesses to specialize in producing the goods and services in which they have a comparative advantage. This specialization leads to increased efficiency and productivity, which in turn drives economic growth and higher profits. By engaging in voluntary trade, individuals and businesses are able to exchange goods and services that they specialize in creating, leading to a more efficient allocation of resources and a larger overall economic output.