-Refer to the table. If Summer and Winter (assumed to be provinces) trade based on the principle of comparative advantage, what will happen?
A) All individuals in both provinces will gain.
B) No one in either province will gain.
C) Some individuals within both provinces will be made worse off.
D) One province will be better off, and the other province will be worse off.

Question

-Refer to the table. If Summer and Winter (assumed to be provinces) trade based on the principle of comparative advantage, what will happen?
A) All individuals in both provinces will gain. 
B) No one in either province will gain. 
C) Some individuals within both provinces will be made worse off. 
D) One province will be better off, and the other province will be worse off.

Quizplus · Accepted Answer

When two regions trade based on comparative advantage, overall welfare increases, but some individuals or groups may be worse off due to changes in production and employment patterns.

-Refer to the Table