When economists talk about the gains from trade they mean that
A)no one ever gets hurt by trade.
B)the benefits of trade outweigh the losses.
C)business firms benefit from trade but not necessarily individuals.
D)trade increases government revenue through taxes on imports.
E)economic restructuring is usually quick and painless.

Question

Quizplus · Accepted Answer

When economists talk about the gains from trade, they mean that the benefits of trade outweigh the losses. While some individuals and industries may suffer in the short term due to increased competition, overall, trade allows for countries to specialize in producing goods and services where they have a comparative advantage, leading to increased efficiency and economic growth.

When Economists Talk About the Gains from Trade They Mean