Consider the Gains from Trade

Multiple Choice

Consider the gains from trade.What is the best definition of "absolute advantage"?

A) There will be no benefits from trade between two nations.
B) A situation where one country can produce one unit of a given product with fewer resources than the other country.
C) Trade fosters the self-sufficiency of nations.
D) A situation where one country can produce one unit of all goods with fewer resources than can another country.
E) Engaging in trade is always to the absolute advantage of one party to the transaction.