A Mercantilist Policymaker Would Be in Favor of Which of the Following

question 8

Multiple Choice

A Mercantilist policymaker would be in favor of which of the following policies orEvents pertaining to his/her country?

• A) a decrease in the size of the population
• B) a minimum wage bill to protect the standard of living of workers
• C) a prohibition on the export of manufactured goods
• D) an increase in the percentage of factors of production devoted to adding value to Imported raw materials in order to later export the resulting manufactured goods.

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Definitions:

Full Production

The level of production at which an economy or firm operates at maximum capacity, utilizing all available resources efficiently without waste.

Technology

The application of scientific knowledge for practical purposes, especially in industry and improvements in tools, machinery, and software.

Full Employment

Describes a situation where all available labor resources are being used in the most economically efficient way, typically with very low unemployment.

Production Possibilities Frontier

A diagram displaying the peak output scenarios for two different goods, given certain resources and influencing factors.