Suppose that two countries engage in trade with one another, and the production possibility model predicts that there will be incredible gains from trade between the two countries.

What might cause the actual gains from trade to be less than the predicted gains from trade?

A. A financial bubble can occur that causes production to be greater than predicted.
B. There can be productivity gains in one sector.
C. Not all resources might be transferable between the sectors in an economy, leaving some resources idle.
D. Countries won't necessarily produce what they have a comparative advantage in.
E. All resources will be transferred between the sectors in an economy, which can cause productivity declines in the short term.