The increase in total utility derived from trading products is called:
A) trade patterns.
B) gains from trade.
C) comparative advantage.
D) labor productivity.

Question

Quizplus · Accepted Answer

Gains from trade are the increase in total utility derived from trading products. Comparative advantage is the ability to produce a good or service at a lower opportunity cost than another producer, and labor productivity is the amount of output produced per unit of labor input, which are not directly related to the increase in total utility from trading products. Trade patterns refer to the general flow of trade between countries or regions.

The Increase in Total Utility Derived from Trading Products Is