Mercantilism Assignment (Scenario) The Final Assignment for Daniel Parilla's International Business Class Involves

question 80

Multiple Choice

Mercantilism Assignment (Scenario)
The final assignment for Daniel Parilla's international business class involves taking an in-depth look at one of the six classical perspectives that explain the rationale for international trade. Daniel plans to present an argument in favor of mercantilism. Daniel will be attempting to convince his classmates that mercantilism leads to national prosperity. Daniel's peers will be given the opportunity to counter his argument.
-Which of the following statements strengthens the proposition that free trade is beneficial to nations?

• A) Free trade increases the standard of living by reducing consumer expenses.
• B) Imported products tend to be more expensive than domestically produced products.
• C) Unrestricted international trade generally lowers the overall prosperity of poor countries.
• D) Unrestricted international trade generally boosts inflation in developed economies.

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Definitions:

Non-discriminating Monopolist

A monopolist who charges a single price for all units of output sold, unlike price-discriminating monopolists who charge different prices.

Marginal Revenue

It refers to the additional income earned from selling one more unit of a good or service.

Demand Schedule

A table that lists the quantity of a good or service that consumers are willing to buy at various prices.

Total Revenue Schedule

A table or graph that shows the total revenue a firm can expect to receive at various levels of output, assuming a constant price.