Which of the Following Policies Reflects Mercantilist Thinking

question 19

Multiple Choice

Which of the following policies reflects mercantilist thinking?

• A) Discouraging exports
• B) Encouraging free trade
• C) Using slave labor
• D) Accumulating precious metals

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Definitions:

Net Present Value Analysis

A method used in capital budgeting to evaluate the profitability of an investment or project by computing the present values of all cash flows related to it.

Cash Flows

The total amount of money being transferred into and out of a business, especially as affecting liquidity.

Annuity

A financial instrument that provides a consistent series of payments to a person, often utilized as a source of income for retired individuals.

Equivalent Cash Flows

Streams of equal value cash flows occurring at regular intervals.