Answer:
"Gains from trade" mean that both parties are better off after making a trade. This is possible because the value each person places on the goods being traded is subjective. For example, Jim can value Mary's bologna sandwich more than his peanut butter sandwich, while Mary can have the opposite preference, meaning that both can walk away from the trade with a good possessing higher value. Sample Partial Credit Answer People will only make a trade if they expect to benefit from it.