The Trading Principle Formulated by Adam Smith Maintained That

question 157

Multiple Choice

The trading principle formulated by Adam Smith maintained that:

• A) International prices are determined from the demand side of the market
• B) Differences in resource endowments determine comparative advantage
• C) Differences in income levels govern world trade patterns
• D) Absolute cost differences determine the immediate basis for trade

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Definitions:

Magnetic Field

A field around a magnetic material or a moving electric charge within which the force of magnetism acts.

Law of Charges

A fundamental principle stating that like charges repel and opposite charges attract, with the force of attraction or repulsion decreasing with distance.

Like Polarity

Term referring to the same electrical charge or magnetic direction between two points or objects.

Unlike Polarity

Refers to the condition where two or more magnetic or electrical fields have orientations that are opposite to each other.