The increase in consumption in each nation resulting from specialization in production and trading is referred to as:
A)basis for trade
B)losses from trade
C)gains from trade
D)pattern of trade

Question

Quizplus · Accepted Answer

The increase in consumption resulting from specialization in production and trading is known as gains from trade. This refers to the benefits nations can experience when they specialize in producing goods or services in which they have a comparative advantage and then trading those goods or services with other nations. This increases overall production, lowers prices, and allows for a wider variety of goods and services to be available to consumers.

The Increase in Consumption in Each Nation Resulting from Specialization