The gains from trade include:
i.lower prices from competition
ii.greater output from specialization
iii.greater variety of goods and services available
A) i and iii only
B) ii and iii only
C) i and ii only
D) i, ii, and iii
E) ii only

Question

Quizplus · Accepted Answer

All three options listed (lower prices from competition, greater output from specialization, and greater variety of goods and services available) are advantages that result from engaging in trade. Therefore, the best choice is D - all three options (i, ii, and iii) are correct.

The Gains from Trade Include