The Evolution of Trade into the Form We See Today

question 79

Multiple Choice

The evolution of trade into the form we see today reflects three events: the collapse of feudal society,the emergence of the mercantilist philosophy,and:

• A)The Great Depression
• B)The establishment of ancient international trade routes
• C)The dot.com bust
• D)The life cycle of the colonial systems of the European nation-states
• E)The emergence a service-centered society

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Definitions:

Surplus

A situation where the quantity supplied of a good exceeds the quantity demanded, often leading to lower prices or stored inventory.

Shortage

Occurs when the quantity demanded of a good exceeds its supply at a given price, leading to an unmet demand in the market.

Quantity Supplied

The total amount of a product or service that producers are willing and able to sell at a given price over a specified period.

Equilibrium Price

is the price at which the quantity of a good or service demanded by consumers equals the quantity supplied by producers, resulting in market balance.