-The data in the above table demonstrates that gains from trade can be captured if
A) each country became self- sufficient, produced both goods for itself, and did not engage in trade.
B) the United States produced concrete in exchange for steel produced in France.
C) the United States produced steel in exchange for concrete produced in France.
D) the United States produced both goods.

Question

-The data in the above table demonstrates that gains from trade can be captured if
A) each country became self- sufficient, produced both goods for itself, and did not engage in trade. 
B) the United States produced concrete in exchange for steel produced in France. 
C) the United States produced steel in exchange for concrete produced in France. 
D) the United States produced both goods.

Quizplus · Accepted Answer

Gains from trade are captured when each country specializes in producing the good for which it has a comparative advantage and then trades with the other country. If the United States produces steel and France produces concrete, both countries can benefit from trade.

-The Data in the Above Table Demonstrates That Gains from Trade