B is the wrong answer **Question 46**When trade opens between two countries, the country with higher income will experience higher __________ (A: MRT; B: MRS; C: benefit; D: income).Correct answer: B

According to the theory of comparative advantage, if countries export that good in which they have lower opportunity cost, then trade benefits both developed and developing countries. However, the magnitude of gains from trade might differ between wealthy and poorer nations.hen two countries engage in trade, the country with higher income will experience higher benefit because of efficient allocation of productive resources toward goods having comparative advantage. This will result in specialization of production of exported goods, which will eventually lead to higher welfare gains in terms of both production and consumption. Thus, Option C is the correct answer.Option A is incorrect because MRT only discusses about the trade-off between two goods when all available productive resources are fully employed without answering the question asked. Option B is incorrect because MRS only discusses about the trade of between two goods by keeping the level of utility constant. Therefore this option also does not answer the question asked. Option D is incorrect because higher income is only part of the trade that depends on terms of trade.Option C is the correct answer as wealthier countries are endowed with efficient productive resources as well as a consumer base who spends a relatively large amount on traded and non-traded goods.