Question

The increase in the level of world production that would occur when countries specialized in the production of just a few goods is based on the principle of:

a. the international division of labor
b. Walras’s Law
c. mercantilism
d. balanced trade

Answer 1

Mercantilism

Step-by-step explanation:

Mercantilism refers to the economic nationalism designed to create a wealthy and strong state. Adam Smith named the phrase "market system" to define the political science scheme that attempted to enhance the nation through disciplining imports and promoting exports.

Throughout the sixteenth century, the most crucial financial reason for mercantilism has been the replacement of the colonial-era major power centers by big, powerful nation-states. Thus, from the above we can conclude that the correct option is mercantilism.