If the international terms of trade settle at a level that is between each country’s opportunity cost then
A. there is no basis for gainful trade for either country.
B. both countries gain from trade.
C. only one country gains from trade.
D. one country gains and the other country loses from trade.
Answer:B
If the international terms of trade settle at a level that is between each country’s opportunity cost then
A. there is no basis for gainful trade for either country. B. both countries gain from trade. C. only one country gains from trade. D. one country gains and the other country loses from trade.