The increases in a nation's output and consumption that result from specialization and trade are called

Question

Quizplus · Accepted Answer

The gains from trade refer to the benefits that countries can achieve through specialization and trade. By each country focusing on producing what they are relatively better at producing, and then engaging in trade with other countries, both parties can consume more goods and services than they would have been able to produce on their own. This leads to an increase in output and consumption, which is what the gains from trade refer to.

The Increases in a Nation's Output and Consumption That Result