Question:

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:

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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.
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The Correct Option is D

Solution and Explanation

The passage states that foreign trade was valuable to Hume because it let a nation use 'more and more varied labour than would otherwise be possible.' The question asks what made foreign trade important in Hume's view, so the right choice has to match this exact reason, a wider variety of labour being put to use.

  1. it allowed the employment of surplus labour in a nation: The passage never talks about labour lying unused, or surplus. It talks about a wider variety of labour being used, not extra labour being absorbed. This option does not match the passage.
  2. it allowed the diversion of labour to export oriented industries: The passage does not say labour moved specifically toward export industries. This is an idea not supported by Hume's statement.
  3. it allowed the deeper specialisation of the same labour force: Specialisation means doing one narrow task better, which is close to the opposite of 'varied labour.' The passage is about variety, not narrowing down to one specialism.
  4. it allowed application of varied labour force in a nation: This restates the passage almost word for word, foreign trade let a nation use varied labour. This is the reason Hume gives.

Option 4 is the only one that repeats Hume's actual reasoning, trade mattered because it let a nation put a more varied labour force to work. So option 4 is correct.

Let's summarize:

  • Hume's point is about variety of labour being used, not about surplus labour or specialisation.
  • Match RC answers to the exact words and idea of the passage, not to a plausible sounding but unstated idea.

The importance of foreign trade, in Hume's eyes, was that it let a nation apply a varied labour force, so option 4 is the answer.

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