Which of the following is a gain from trade?

Question

Quizplus · Accepted Answer

A gain from trade is a situation where all parties involved in the trade are better off after the trade than they were before. In this case, a higher standard of living for all trading countries is a clear indication that the trade has resulted in a gain. B, C, and D are not gains from trade, as they involve either a decrease in work time, an increase in prices, or a decrease in consumption possibilities, all of which are undesirable outcomes.

Which of the Following Is a Gain from Trade