Question

The gains from trade area.evident in economic models, but seldom observed in the real world.b.evident in the real world, but impossible to capture in economic models.c.a result of more efficient resource allocation than would be observed in the absence of trade.d.based on the principle of absolute advantage.

Answer 1

Option C

The gains from trade are a result of more efficient resource allocation than would be observed in the absence of trade.

Explanation:

The statisticians have surveyed the gains from trade from diverse viewpoints. The ideal ideologists thought that gains from trade emerged from enhanced rendering and specialization. Gains from trade are the exclusive compensations to business operators from holding granted an improvement in deliberate dealing with each other.

The contemporary ideologists viewed the gains from trade as the gains emanating from exchange and specialization. To estimate the gains from the trade, a metaphor of one nation's expense of making with a remote nation expense of making for the identical commodity is lacked.