Trade with any nation can be mutually beneficial The governm

Trade with any nation can be mutually beneficial. The government can potentially improve market outcomes if market inequalities or market failure Market power and externalities arc two possible causes of market failure. Productivity is defined as the quantity of goods and services produced from each unit of labor input. Inflation decreases the value of money. Variations in the standard of living across countries is due almost entirely to differences in each nation output of goods and services. In the long-run. society faces a tradeoff between inflation and unemployment.

Solution

12.

Correct Answer:

True

Explanation:

Trade with any nation is done on the basis of comparative advantage also. It helps an economy to focus on those products that can be produced more efficiently. Then, other products can be traded with other nations. On a similar line, other nation will apply the law of comparative advantage and do the same. Thus, trade with each other can be mutually beneficial.

Pl. repost other unanswered questions for their proper answers.