Which of the following is true of mercantilism?
A. Mercantilists believed that a nation does not benefit directly from its exports.
B. Mercantilists believed that free trade is always beneficial for the trading nations.
C. Mercantilists believed that under free trade each of the trading countries benefit equally.
D. Mercantilism believed that national well-being was based on national holdings of gold and silver.
Answer: D
You might also like to view...
When two goods are substitutes, a shock that raises the price of one good causes the price of the other good to
A) remain unchanged. B) decrease. C) increase. D) change in an unpredictable manner.
Sheila and Jim live in an island where they are the only two workers. Sheila can either catch 10 fish or gather 40 pounds of berries each day, and Jim can either catch 8 fish or gather 24 pounds of berries each day. Both of them work 200 days per year. At current world prices 1 fish trades for 3.5 pounds of berries. Who has the comparative advantage in producing berries?
A. Jim B. Sheila C. Sheila and Jim D. Neither of them
When the dollar value of the euro is high:
A. travel in the U.S. is less expensive for Europeans. B. travel in the U.S. is more expensive for Europeans. C. the dollar has appreciated. D. travel in Europe is less expensive for Americans.
Suppose Chris is a potter who makes mugs. His total costs depend on the number of mugs he makes each day, as shown in the table below.Number ofMugs Per DayTotal CostPer Day0$101$142$193$254$325$406$49If Chris's fixed costs decrease, then in the short run his profit-maximizing level of output will:
A. not change. B. increase. C. only increase if he can earn a positive profit. D. decrease.