Unlike the Mercantilists,Adam Smith Maintained That

question 40

Multiple Choice

Unlike the mercantilists,Adam Smith maintained that:

• A) Trade benefits one nation only at the expense of another nation
• B) Government control of trade leads to maximum economic welfare
• C) All nations can gain from free international trade
• D) The world's output of goods must remain constant over time

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Definitions:

BCE

stands for Before Common Era, a non-religious alternative term to B.C., denoting years before the start of the Gregorian calendar's year count.

Labor-Force Participation Rate

The ratio of working-age individuals who are either employed or on the hunt for a job.

Unemployment Rate

The fraction of the labor force that lacks employment but is keenly searching for a position.

Labor Underutilization

A situation where a workforce does not utilize its full potential, often reflected in high unemployment, underemployment, and discouraged workers.