The static gains from trade:
A) result in an increase in the quality of goods over time.
B) are a one time event.
C) result in the increase in the size of export firms over time.
D) result in a faster rate of economic growth for countries.
E) cannot be calculated.

Question

Quizplus · Accepted Answer

Static gains from trade refer to the immediate benefits that countries receive from trading with each other, such as increased efficiency and access to a greater variety of goods at lower prices. These gains are considered "one time" because they occur when trade policies change (e.g., tariffs are reduced) and markets adjust to the new conditions, rather than being ongoing benefits that accumulate over time.

The Static Gains from Trade