1. Which of the following statements is/are correct with regard to the early trade theories and/or theorists? A. The Mercantilists viewed economic activity as a setting in which only one country faces an opportunity cost during trade. B. The Mercantilists believed that economies operated below full employment whereas David Hume’s price-specie-flow mechanism theory assumed that economies operated at full employment. C. David Ricardo disagreed with Adam Smith’s theory of absolute advantage. D. Adam Smith argued that trade was a zero-sum game. E. The theory of absolute advantage and comparative advantage yield the same trade outcomes