Trade is a source of economic growth and prosperity because it
A)moves goods,services,and resources from people who value them less to people who value them more.
B)helps trading partners achieve larger outputs through division of labor,specialization,and adoption of methods of mass production.
C)serves as a zero-sum game in which the gains to one trading partner are offset by losses to the other trading partner.
D)both a and b,but not c.

Question

Quizplus · Accepted Answer

Trade allows for the movement of goods, services, and resources from people who value them less to people who value them more, which leads to greater overall efficiency and welfare. Additionally, trade fosters division of labor, specialization, and the adoption of methods of mass production which can lead to larger outputs and economic growth. Trade is not a zero-sum game, as both trading partners can benefit from engaging in trade.

Trade Is a Source of Economic Growth and Prosperity Because