________ Says That Nations Should Accumulate Financial Wealth,usually in the Form

question 36

Multiple Choice

________ says that nations should accumulate financial wealth,usually in the form of gold,by encouraging exports and discouraging imports.

• A) Absolute advantage theory
• B) Factor proportions theory
• C) Mercantilism
• D) Communism

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Definitions:

Income Elasticity

An indicator of the degree to which demand for a product or service shifts following a variation in consumer income.

Housing

The provision of accommodation, typically through buildings or structures where individuals or families live.

Income Increase

A rise in the amount of money earned by an individual or collected by an organization, often measured on a monthly or yearly basis.

Cross-price Elasticity

A measure of how the quantity demanded of one good responds to a change in price of another good, indicating the degree of substitutability or complementarity between the two goods.