How can comparative advantage yield gains from trade?

What will be an ideal response?

Comparative advantage refers to the ability to produce a good or service at lower opportunity cost compared to other producers. If nations specialize in producing goods in which they have a comparative advantage and trade at rates of exchange that are more favorable than the opportunity costs they would have faced without trade, then they can obtain more goods for consumption with trade than they could have obtained for consumption without trade. These consumption gains are the gains from trade.

Economics

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Explain what a "perfectly contestable" market means. Give an example of a perfectly contestable market. Explain why the outcome in a perfectly contestable market is that firms produce efficiently

What will be an ideal response?

Economics

Aggregate output is ________ related to autonomous consumer expenditure, and is ________ related to planned investment spending

A) negatively; negatively B) negatively; positively C) positively; negatively D) positively; positively

Economics