Suppose a Country Attempts to Be Self-Sufficient and Doesn't Trade

question 175

Multiple Choice

Suppose a country attempts to be self-sufficient and doesn't trade with any other countries. From an economic perspective, citizens of this nation can be expected to

• A) gain materially from this policy because they can consume more goods over time than if they engaged in trade with foreigners.
• B) produce less total value than they could if they specialized and engaged in trade with other nations.
• C) gain from more rapid growth since home markets are reserved for home producers.
• D) be just as well off without trade since the value of what is sent to other nations in trade just equals the value of what is received in trade.