Examlex
Which of the following statements is TRUE?
Gains from Trade
The net benefits that parties obtain by voluntarily exchanging goods or services in markets.
Comparative Advantage
The ability of an individual or country to produce a good or service at a lower opportunity cost than others.
Production Possibility Curve
A graph that shows the maximum number of possible units a company can produce of two products given a set of inputs, reflecting the trade-off and opportunity cost of producing one product over another.
Trade
The action of buying, selling, or exchanging goods and services between people, firms, or countries.
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