Which of the following statements is false?
A)The gains from trade can be broken down into the gains from exchange and the gains from specialization
B)gains from exchange result even without specialization
C)gains from specialization result even without exchange
D)none of the above

Question

Quizplus · Accepted Answer

Gains from specialization are a result of producing a higher quantity of a good with the same amount of resources, which lowers the per-unit cost of production. However, if there is no exchange, then there would be no way to trade the excess quantity produced for other goods, and therefore no gains from specialization.

Which of the Following Statements Is False