The classical theorists believed that the gains from trade resulted from
A)Stabilisation of price level
B)Increased production and specialization
C)Exchange and specialization
D)Perfect competition

Question

Quizplus · Accepted Answer

Increased production and specialization is the correct answer because the classical theorists believed that trade would lead to increased production and specialization, which would in turn lead to lower prices and higher incomes.

The Classical Theorists Believed That the Gains from Trade Resulted