Gains from trade arise because of:
A)specialization in production.
B)specialization in consumption.
C)marginal analysis.
D)individual choice.

Question

Quizplus · Accepted Answer

Gains from trade arise because of specialization in production, allowing individuals, firms, and countries to focus on and produce what they are most efficient at, leading to greater productivity and efficiency overall. Specialization allows for a more efficient use of resources and ultimately leads to greater output and higher living standards. While marginal analysis, individual choice, and specialization in consumption all play a role in trade, they do not directly lead to gains from trade in the same way that specialization in production does.

Gains from Trade Arise Because Of