Considered to Be the First Theory of International Trade,the Principal

question 31

Multiple Choice

Considered to be the first theory of international trade,the principal assertion of mercantilism is that

• A)countries differ in their ability to produce goods efficiently.
• B)gold and silver are the mainstays of a country's wealth and essential to vigorous commerce.
• C)countries should specialize in the production of goods for which they have an absolute advantage.
• D)differences in labor productivity between nations underlie the notion of comparative advantage.
• E)resources can move freely from the production of one good to another within a nation.

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Definitions:

Cross-Cultural Psychology

The scientific study of how cultural factors influence human behavior, cognition, and perception.

Psychological Theories

Principles formulated to understand and explain mental functions, behavior, and the dynamics of personality.

Universal Relevance

The quality of being significant or applicable in all situations, places, or times.

Meta-Theory

A theory about theories; it examines the structures, purposes, and methodologies of theories.