Which of the Following Is True of Mercantilism

question 30

Multiple Choice

Which of the following is true of mercantilism?

• A)Mercantilists believed that free trade is always beneficial for the trading nations.
• B)Mercantilists believed that under free trade each of the trading countries benefit equally.
• C)Mercantilists believed that a nation does not benefit directly from its exports.
• D)Mercantilism believed that national well-being was based on national holdings of gold and silver.

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Definitions:

Gross Investment

The total expenditure on new capital assets plus the replacement of depreciated assets within an economy in a specific time period.

Net Domestic Product

The aggregate worth of every product and service generated inside a nation over a particular timeframe, deducting depreciation.

Gross Domestic Product

The total market value of all final goods and services produced within a country in a specific time period, indicating economic health.

Depreciation

Depreciation is the accounting process of allocating the cost of tangible assets over their useful lives, reflecting wear and tear or obsolescence.