The Principle of Mercantilism Views Trade as A(n) ________ Game

question 21

Multiple Choice

The principle of mercantilism views trade as a(n) ________ game.

• A) advantage
• B) positive-sum
• C) zero-sum
• D) negative-sum

---

Definitions:

Marginal Social Benefit

The additional gain to society as a whole from an extra unit of production.

Marginal Social Cost

The cost to society of producing an additional unit of a good or service, including both the private costs and any external costs.

Marginal Social Benefits

The extra advantage to the entire community from using an additional unit of a product or service.

Public Goods

Goods that are non-excludable and non-rivalrous, meaning their use by one individual does not reduce availability to others.