Exports to the world after adjusting for wage

Info icon This preview shows pages 10–13. Sign up to view the full content.

View Full Document Right Arrow Icon
exports to the world, after adjusting for wage differentials. T F 30. The basic idea of mercantilism was that wealth consisted of the goods and services produced by a nation. T F 31. According to Adam Smith, international trade was a “win-win” situation since all nations could enjoy gains from trade. T F 32. The price-specie-flow mechanism illustrated why one nation’s gains from trade were accompanied by another country’s losses. T F 33. Complete specialization usually occurs under the assumption of increasing opportunity costs. T F 34. Adam Smith contended that gold, silver, and other precious metals constituted the wealth of a nation. 10
Image of page 10

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon