Mercantilism Is the Direct Intellectual Ancestor of Modern-Day Protectionism

question 20

True/False

Mercantilism is the direct intellectual ancestor of modern-day protectionism.

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Definitions:

Subsidies

Financial assistance grants or tax breaks provided by the government to support businesses, organizations, or individuals, encouraging production or consumption of certain goods and services.

Computer Chips

Small pieces of semiconductor material (usually silicon) with an integrated circuit (IC) used in electronic devices to perform computing tasks and other functions.

Negative Externality

A situation where a third party suffers costs from an economic transaction in which they are not directly involved.

Patent

A government-granted exclusive right to an inventor, allowing them the sole right to make, use, and sell an invention for a certain period of time.