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Q:

If a country produces consumer goods only and nothing else, then-

  • 1
    Standard of living will be highest
  • 2
    The country have certain amount of good
  • 3
    The country will soon become poor if external trade will not happen
  • 4
    The country will gradually become rich if external trade will not happen
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Answer : 3. "The country will soon become poor if external trade will not happen"
Explanation :

If any country will produce only consumer good, then gradually the country will become poor as there will be no exchange of other goods and the economy of that country will highly be affected.

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