Multiple choice

Assertion (A): Gains from trade are determined by terms of trade. Reason (R): Gains from international trade are based on comparative differences in costs.

  1. Both (A) and (R) are true and (R) is the correct explanation of (A).

  2. Both (A) and (R) are true, but (R) is not the correct explanation of (A).

  3. (A) is true, but (R) is false.

  4. (A) is false, but (R) is true.

  5. Both (A) and (R) are false.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Both (A) and (R) are true, but (R) is not the correct explanation of (A).

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