For What Explicit Purpose Did Imperialists Develop the Economic Policy

question 83

Multiple Choice

For what explicit purpose did imperialists develop the economic policy known as "mercantilism"?

• A) to ensure that colonies benefited the mother nations
• B) to modernize colonial economies
• C) to benefit the merchant class both in the colonies and in the mother nation
• D) to encourage the development of large-scale agriculture

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Definitions:

Taxes Rise

Taxes rise refers to the increase in the required contributions by individuals or corporations to government revenues.

Laspeyres Price Index

a measure of the change in the cost of purchasing a fixed basket of goods and services, relative to the cost of the same basket in a base period.

Demand Function

A mathematical expression showing the relationship between the quantity demanded of a good and its price, along with other determinants like income and prices of related goods.

Substitution Effect

The change in consumption patterns due to a change in the relative prices of goods, leading consumers to substitute one good for another.