During the 1980s,U.S.iron ore workers realized dynamic gains from trade due to
A) diseconomies of large-scale production of iron ore
B) foreign competition inspiring greater productivity for iron ore producers
C) higher oil prices resulting in increased cost of producing iron ore
D) less investment occurring in the iron ore business

Question

Quizplus · Accepted Answer

Foreign competition inspired greater productivity among U.S. iron ore producers, which led to dynamic gains from trade during the 1980s. This allowed the U.S. producers to compete more effectively in the global market and increase their profits. The other options (A, C, D) are not relevant or accurate explanations for the dynamic gains from trade in the U.S. iron ore industry during the 1980s.