Question

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

Answer 1

b. A result of more efficient resource allocation than would be observed in the absence of trade.

Step-by-step explanation:

Trade allows countries to concentrate their resources on what they can do best, generating a higher efficiency and they can exchange or buy other goods from another country in the international market. Because of this, trade allows to have a more efficient resource allocation.