The economic philosophy that favors strict limits on imports and strong support for exports is called
A) zero sum.
B) autarky.
C) mercantilism.
D) comparative advantage.
E) absolute advantage.
C
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Diminishing marginal returns explains why a firm’s long-run average total cost curve is U shaped.
Answer the following statement true (T) or false (F)
Under a consumption-based theory of the pricing of risky assets, uncertain returns on such an asset should be discounted by a "stochastic discount factor" that takes into account: a. the mean and standard deviation of the uncertain return
b. whether the uncertain return has a normal distribution. c. both the nominal and real interest rates. d. the rate of time preference and present and future marginal utility of wealth.
If a budget is cyclically balanced, the government should run a surplus when the economy experiences an expansionary gap
a. True b. False Indicate whether the statement is true or false
According to the crowding-out effect, a budget deficit will lead to:
a. reduced investment spending and a reduction in long-term economic growth. b. reduced investment spending and an increase in long-term economic growth. c. increased investment spending and a reduction in long-term economic growth. d. increased investment spending and an increase in long-term economic growth.