Adam Smith Recorded in 1776 That the "Two Greatest and Most

question 32

Multiple Choice

Adam Smith recorded in 1776 that the "two greatest and most important" events in the history of mankind were the:

• A) discovery of America and the Portuguese sea route around Africa to Asia.
• B) discovery of America and the beginning of the slave trade.
• C) birth of mercantilism and the Portuguese sea route around Africa to Asia.
• D) beginning of the slave trade and the Portuguese sea route around Africa to Asia.
• E) discovery of America and the birth of mercantilism.

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Definitions:

Higher-Priced Domestic

Domestic products or services that are sold at a higher price compared to their foreign equivalents or competitive products in the local market.

Tariffs

Taxes imposed by a government on imported goods to protect domestic industries or to generate revenue.

Quotas

Restrictions set by governments on the amount of a certain good that can be imported or exported.

World Price

The price of a good that is traded on the global market.