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.'

As per Hume, free trade between nations was made advantageous by the outcome of:

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Look for the cause behind the mutual benefit, the rivalry or emulation between nations, not the benefit itself.
Updated On: Jul 10, 2026
  • mutual increases in riches and commerce.
  • emulation of industrial activity by different nations.
  • affable promotion of industrial activity among nations.
  • productive employment of labour in different nations.
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The Correct Option is B

Solution and Explanation

The passage gives two separate ideas: first, that a rise in one nation's riches and commerce usually lifts its neighbours too, and second, that rivalry between nations, what Hume calls emulation, keeps industry alive in all of them. The question asks for the outcome that made free trade advantageous, so we need the cause behind the mutual benefit, not just a restatement of the benefit itself.

  1. mutual increases in riches and commerce: This just restates the advantage itself, nations getting richer together. It does not explain what produced that advantage, so it cannot be the outcome asked for.
  2. emulation of industrial activity by different nations: This matches Hume's own line that rivalry, or emulation, between nations keeps industry active in all of them. This rivalry is the outcome that drives the mutual gain, so it fits the question.
  3. affable promotion of industrial activity among nations: The passage talks about competitive emulation between rivals, not friendly or affable cooperation. This option changes the tone of Hume's argument.
  4. productive employment of labour in different nations: Productive labour is mentioned earlier as the general asset of a country, not as the specific outcome that makes trade advantageous here.

Only option 2 names the actual mechanism, competitive emulation, that Hume says keeps industry alive across trading nations, so option 2 is correct.

Let's summarize:

  • The advantage of trade, mutual riches, and the cause of that advantage, emulation, are two different things; the question asks for the cause.
  • Watch for options that just repeat the result described earlier in the passage instead of answering what was actually asked.

Free trade was made advantageous by emulation of industrial activity between nations, so option 2 is the answer.

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