When nations are of similar size and have similar taste patterns, the gains from trade
A) are shared equally between them.
B) are impossible to determine.
C) are too small, so that trading is not beneficial.
D) are determined by the nation that has comparative advantage in the more essential product.

Question

Quizplus · Accepted Answer

When nations are of similar size and have similar taste patterns, the gains from trade tend to be shared equally between them, as both can benefit from the efficiencies and specializations that trade enables.

When Nations Are of Similar Size and Have Similar Taste