Adam Smith and David Ricardo Reasoned That in a World

question 169

True/False

Adam Smith and David Ricardo reasoned that in a world of two countries, at least one country will be worse off as the result of trade.

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Definitions:

Sales Tax

A tax imposed by a government on the sale of goods and services.

Tax Revenue

The financial gains secured by governments through tax revenue.

Supply Shift

A change in the quantity of a product or service that suppliers are willing and able to sell in the market, due to factors like production costs, technology, and number of sellers.

Excise Tax

Excise Tax is a tax levied on specific goods, services, or transactions, such as tobacco, alcohol, and gasoline, typically to discourage consumption or raise revenue.