Asked by

Derrick Himmel
on Nov 17, 2024

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The gains from trade are

A) 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.

Gains From Trade

Gains from trade are the benefits that parties obtain from engaging in voluntary exchange, including increased efficiency and access to a greater variety of goods and services.

Economic Models

Simplified representations of complex economic processes, designed to help understand how the economy functions and predict future economic behavior.

Resource Allocation

The process of distributing available resources among various competing needs or uses in order to achieve a desired outcome or optimize efficiency.

  • Acknowledge the prospects for joint benefits derived from exchange among individuals or sovereign nations.
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SR
sydney rohlfingNov 18, 2024
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