Question:medium
Read the following passage and answer the question that follows.
In Hume's eyes productive labour was the greatest asset of a country, and foreign trade was valuable because it enabled a nation to use more and more varied labour than would otherwise be possible. But commerce was of mutual advantage to the nations involved, not a benefit to one and injury to the other. 'The increase of riches and commerce in any one nation,' added Hume, 'instead of hurting, commonly, promotes the riches and commerce of all its neighbours.' 'The emulation in rival nations serves ... to keep industry alive in all of them.'
The importance of foreign trade, in the eyes of Hume, was due to the fact that:
Read the following passage and answer the question that follows.
In Hume's eyes productive labour was the greatest asset of a country, and foreign trade was valuable because it enabled a nation to use more and more varied labour than would otherwise be possible. But commerce was of mutual advantage to the nations involved, not a benefit to one and injury to the other. 'The increase of riches and commerce in any one nation,' added Hume, 'instead of hurting, commonly, promotes the riches and commerce of all its neighbours.' 'The emulation in rival nations serves ... to keep industry alive in all of them.'
The importance of foreign trade, in the eyes of Hume, was due to the fact that:
In Hume's eyes productive labour was the greatest asset of a country, and foreign trade was valuable because it enabled a nation to use more and more varied labour than would otherwise be possible. But commerce was of mutual advantage to the nations involved, not a benefit to one and injury to the other. 'The increase of riches and commerce in any one nation,' added Hume, 'instead of hurting, commonly, promotes the riches and commerce of all its neighbours.' 'The emulation in rival nations serves ... to keep industry alive in all of them.'
The importance of foreign trade, in the eyes of Hume, was due to the fact that:
Show Hint
Match the option to Hume's exact phrase about foreign trade letting a nation use more varied labour.
Updated On: Jul 10, 2026
- it allowed the employment of surplus labour in a nation.
- it allowed the diversion of labour to export oriented industries.
- it allowed the deeper specialisation of the same labour force.
- it allowed application of varied labour force in a nation.
Show Solution
The Correct Option is D
Solution and Explanation
Step 1: Understanding the Question:
We are asked what Hume saw as the reason foreign trade mattered to a nation. The answer has to come directly from the passage, not from outside knowledge of trade theory, since RC questions test what the author actually wrote, not what we may already believe about trade.
Step 2: Key Approach:
Locate the exact sentence in the passage that gives Hume's reason, then match its wording to the options instead of relying on general economic ideas about trade. Once the key phrase is found, every option can be checked against it one by one.
Step 3: Detailed Explanation:
The passage says foreign trade was valuable because it enabled a nation to use more and more varied labour than would otherwise be possible. The key phrase is varied labour, and that phrase is the yardstick for every option.
Checking each option against this phrase, surplus labour (option 1) is about unused labour sitting idle, not about variety, so it is wrong. Diversion to export industries (option 2) is not mentioned anywhere in the passage; it is an assumption brought in from outside. Deeper specialisation of the same labour force (option 3) means labour becomes narrower and more focused on one task, which is close to the reverse of varied. Only application of varied labour force in a nation (option 4) copies Hume's own reasoning almost word for word.
Step 4: Final Answer:
The importance of foreign trade lay in letting a nation apply a varied labour force, so option 4 is correct, and every other option either misreads the passage or introduces an idea the passage never states.
We are asked what Hume saw as the reason foreign trade mattered to a nation. The answer has to come directly from the passage, not from outside knowledge of trade theory, since RC questions test what the author actually wrote, not what we may already believe about trade.
Step 2: Key Approach:
Locate the exact sentence in the passage that gives Hume's reason, then match its wording to the options instead of relying on general economic ideas about trade. Once the key phrase is found, every option can be checked against it one by one.
Step 3: Detailed Explanation:
The passage says foreign trade was valuable because it enabled a nation to use more and more varied labour than would otherwise be possible. The key phrase is varied labour, and that phrase is the yardstick for every option.
Checking each option against this phrase, surplus labour (option 1) is about unused labour sitting idle, not about variety, so it is wrong. Diversion to export industries (option 2) is not mentioned anywhere in the passage; it is an assumption brought in from outside. Deeper specialisation of the same labour force (option 3) means labour becomes narrower and more focused on one task, which is close to the reverse of varied. Only application of varied labour force in a nation (option 4) copies Hume's own reasoning almost word for word.
Step 4: Final Answer:
The importance of foreign trade lay in letting a nation apply a varied labour force, so option 4 is correct, and every other option either misreads the passage or introduces an idea the passage never states.
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