Explain what is meant by a zero-sum game, and why it was central to Mercantilist thinking. Then, explain how Smith's idea of absolute advantage altered the nature of the "game."
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Q1: During the price-specie-flow adjustment process to a
Q2: David Hume's price-specie-flow mechanism
A) reinforced the Mercantilist
Q3: Two important assumptions contained in David Hume's
Q4: If the demand for traded goods is
Q6: Why was a positive trade balance so
Q7: (a) Why did the Mercantilists think
Q8: The price-specie-flow mechanism suggested that
A) a country
Q9: In Adam Smith's view, international trade
A) benefited
Q10: In David Hume's price-specie-flow doctrine or adjustment
Q11: Explain how the price-specie-flow mechanism operates to
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