What Was Mercantilism

question 39

Multiple Choice

What was mercantilism?

• A) An economic theory carefully elaborated by Adam Smith in The Wealth of Nations
• B) The theory that a nation's power was measured in its wealth; to maximize wealth, a country would need to export more than it imported
• C) A colonial American policy of trading primarily with England in order to strengthen political and economic ties
• D) A theory of business organization in which merchants formed joint stock companies to pool their capital
• E) The belief that the most effective way to escape from the Long Depression was to increase imports of agricultural goods

---

Definitions:

Actual Price Level

The current average level of prices for goods and services in an economy, reflecting inflation or deflation.

Corrective Actions

Steps taken to fix a problem or eliminate a cause of nonconformities in processes or products.

Expected Price Level

The anticipation or forecast of future prices overall, impacting saving and spending decisions of consumers and businesses.

Actual Price Level

The general level of prices for goods and services in the economy at a specific point in time.