According to the Mercantilists

question 10

Multiple Choice

According to the mercantilists:

• A)Only one nation can gain from trade,and it is at the expense of other nations.
• B)All nations can gain mutually from trade without any reduction in welfare to any nation.
• C)No nations gain from trade,as it is necessary for each country to sacrifice more than they gain.
• D)Trade has nothing to do with a nation's wealth or well-being.

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Definitions:

Specialization

The process by which individuals, organizations, or nations concentrate on producing a limited range of goods or services, to increase efficiency and productivity.

Exchange

The act of trading goods, services, currencies, or other commodities between parties.

Self-interest

The pursuit of personal advantages and well-being, often guiding individual economic decisions.

Division of Labor

A method that breaks down the production of a product into a series of specific tasks, each performed by a different worker.