The United States is one of the richest nations in the world,

Question

Quizplus · Accepted Answer

Even though the United States is a rich nation, it can still benefit from specialization and trade. This is because trade allows countries to focus on producing the goods that they are relatively better at producing, and then exchanging them for other goods that other countries are relatively better at producing. By doing so, all participating countries can increase their overall economic welfare, regardless of their starting wealth levels. Therefore, option C is the correct answer. Options A, B, D, and E are incorrect because they make incorrect assumptions about the nature of gains from trade and comparative advantage.

The United States Is One of the Richest Nations in the World