COMM 220 Chapter Notes - Chapter 3: Zero-Sum Game, Mercantilism, Takers
22 Oct 2014
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Nations maximize their material welfare by specializing in goods and services that have the lowest relative costs of production. Adam smith and the attack of economic nationalism. Adam smith wrote the wealth of nations that attacked mercantilism (nationalistic. : stressed exports over imports, primarily as a way to obtain revenues, : the concept that one nation"s gain is another nation"s loss (no net gain) In the 1770s, there were many improvements in the standard of living as a result of. Voluntary exchanges are positive sum, not zero sums. However, this zero sum belief is wrong when we have a voluntary exchange economics) Mercantilism mercantilist thinking was the belief that trade was a zero sum activity. When a grocery store sells a gallon of milk, both the store and the consumer are better off sports increasing specialization in production, however, specialization depends on the size of the market.
