Question

One parent picks up the child from day care while the other parent goes to the grocery store and begins to make dinner. This is an example of which principle at work

Answer 1

One parent picks up the child from daycare while the other parent goes to the grocery store and begins to make dinner. This is an example of which principle is at work?

The correct answer is There are gains from trade.

Why are there gains from trade?

The price of one commodity relative to the other commodity that the two countries agree to trade. Good trade conditions allow a country to import goods at a lower opportunity cost than the cost of producing goods domestically, thus benefiting the country from trade.

Trade is central to ending world poverty. Countries that are open to international trade tend to grow faster, innovate, be more productive, and provide people with higher incomes and more opportunities. Open trade also benefits low-income households by providing consumers with more affordable goods and services.

Learn more about principles at work here

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