____ must exist in order for gains from trade to be realized.
A)Governments
B)Markets
C)Households
D)Interaction
E)Firms

Question

Quizplus · Accepted Answer

Gains from trade occur when two parties come together and voluntarily exchange goods or services that each values more highly than what they gave up. This interaction between two parties is essential for gains from trade to occur. Without interaction, there can be no exchange, and hence, no gains from trade. While governments, markets, households, and firms are all important components of trade, they alone cannot facilitate gains from trade; it is the interaction between them that is necessary.

____ Must Exist in Order for Gains from Trade to Be