Which of the following is a gain from trade?
A)A higher standard of living for all trading countries.
B)A shorter workweek for all trading countries.
C)A level of self-sufficiency for all trading countries.
D)A higher price level for all trading countries.

Question

Quizplus · Accepted Answer

The main gain from trade is that it allows countries to specialize in producing goods and services in which they have a comparative advantage, which leads to increased efficiency and productivity. This translates into a higher standard of living for all trading countries as they can access a wider variety of goods at lower prices. The other choices are not gains from trade.

Which of the Following Is a Gain from Trade