According to the Economic Theory Known as Mercantilism

question 17

Multiple Choice

According to the economic theory known as mercantilism:

• A) merchants should control the government because they contributed more than others to national wealth.
• B) the government should regulate economic activity so as to promote national power.
• C) the government should encourage manufacturing and commerce by keeping its hands off of the economy.
• D) colonies existed as a place for the mother country to send raw materials to be turned into manufactured goods.

---

Definitions:

Social Traps

Situations in which a group or individual acts in a way that is beneficial in the short term but detrimental in the long term, often due to a failure to consider the wider consequences.

Intrinsically Rewarding

Valuable or fulfilling in itself, without requiring external reward or recognition.

Altruism

The behavior and attitude of selflessly caring for the well-being of others, often at a personal cost.

Windfall Bonus

An unexpected gain or profit, often a large sum of money received unexpectedly.