Which of the following statements about trade is true?
A) Trade involves a winner and a loser.
B) Trade often hurts both parties in the long run.
C) Trade is a zero-sum proposition.
D) Trade can benefit both parties.

Question

Quizplus · Accepted Answer

Trade can benefit both parties involved. When two parties engage in trade, they do so voluntarily because they believe they will both be better off as a result. Through trade, each party can specialize in producing the good or service in which they have a comparative advantage, resulting in a more efficient allocation of resources and increased productivity. This can lead to lower prices, increased innovation, and an overall improvement in living standards.

Which of the Following Statements About Trade Is True