________ gains from trade refer to the situation where,over time,international trade leads to an outward shift in a country's production possibility frontier.
A)Static
B)Dynamic
C)Political
D)Outward

Question

Quizplus · Accepted Answer

Dynamic gains from trade refer to the long-term benefits of international trade where a country's production possibility frontier shifts outward due to increased specialization and productivity gains. It allows countries to produce more goods and services through the efficient allocation of resources, leading to economic growth and development. Static gains from trade, on the other hand, refer to the short-term benefits of international trade where countries engage in mutually beneficial exchange of goods and services based on comparative advantage. Political and outward gains from trade are not commonly used terms in economics.

________ Gains from Trade Refer to the Situation Where,over Time,international