To achieve gains from trade, a country
A)needs to have an absolute advantage in the production of all goods.
B)should produce at the midpoint of its PPF.
C)must produce at a point beyond its PPF.
D)specializes in the producing a good in which it has a lower opportunity cost.
E)needs to have an absolute advantage in the production of at least one good.

Question

Quizplus · Accepted Answer

A country can achieve gains from trade by specializing in the production of goods for which it has a comparative advantage, meaning it has a lower opportunity cost compared to other countries.

To Achieve Gains from Trade, a Country