The Central Reason Why There Are Gains from International Trade

question 131

Multiple Choice

The central reason why there are gains from international trade is because

• A)​trading allows otherwise unemployed people to have jobs.
• B)​the rate of interest is not the same in all countries.
• C)​resources are not equally distributed to all nations.
• D)​those nations with absolute advantages in producing many goods can produce all of those goods at lower opportunity costs than other countries.

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Definitions:

Yardstick Approach

Logical argumentation approach that uses a number of criteria to evaluate one or more possible solutions.

Logical Arguments

Reasoning structured in a way that follows principles of logic, typically involving premises that lead to a conclusion.

Hypothesis

A potential explanation that needs to be tested.

Potential Explanation

A possible reason or rationale that could clarify or account for a specific phenomenon or situation.