Which of the Following Best Characterizes the Relationship Between the Parties

Multiple Choice

Which of the following best characterizes the relationship between the parties to a trade and the gains from trade?

A) Gains from trade are fueled by differences in preferences and differences in opportunity costs of production.
B) Gains from trade are fueled by differences in preferences only.
C) Gains from trade are fueled by differences in opportunity costs of production only.
D) Gains from trade are greatest when there are no differences between the two parties to trade.