The gains from trade are
A)evident in economic models, but seldom observed in the real world.
B)evident in the real world, but impossible to capture in economic models.
C)a result of more efficient resource allocation than would be observed in the absence of trade.
D)based on the principle of absolute advantage.

Question

Quizplus · Accepted Answer

Trade allows countries to specialize in the production of goods and services in which they have a comparative advantage, leading to more efficient allocation of resources and increased overall economic welfare.

The Gains from Trade Are