If trade opens up between the two formerly autarkic countries,Australia and Belgium,then
A)the real income of Australia but not of Belgium will increase.
B)the real income of both countries will increase.
C)the real income of Australia and of Belgium will increase.
D)the real income of neither country will increase.
E)the real income of both countries may increase.

Question

Quizplus · Accepted Answer

When trade opens between two countries, both can benefit from specialization and exchange, potentially increasing the real income of both countries.

If Trade Opens Up Between the Two Formerly Autarkic Countries,Australia