Question

When Mexico trades cement for U.S. computers, the gains from trade can be expressed as: 1....

When Mexico trades cement for U.S. computers, the gains from trade can be expressed as:

1.

trade allows Mexico to obtain more computers for the same amount of cement

2.

trade allows Mexico to experience a rise in gross domestic product

3.

trade allows winners to compensate losers and still come out ahead

4.

all of the other answers are correct

5.

trade allows the U.S. to obtain cement at a lower resource cost

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Answer #1

Ans. 5) Trade allows the US to obtain cement at a lower resource cost.

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