Refute the Claim by Mercantilists Who Claimed That Without Severe

question 72

Essay

Refute the claim by mercantilists who claimed that without severe restrictions on international trade and payments,a country might find itself impoverished and without an adequate supply of circulating monetary gold as a result of balance of payments deficits.

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Definitions:

Industry

A group of companies or organizations that produce similar goods or services.

Purely Competitive

A purely competitive market is one with many sellers and buyers where no single entity has significant control over prices and where products are largely undifferentiated, leading to market equilibrium determined by supply and demand.

Total Profit

The total financial gain made by a business after subtracting all costs and expenses from total revenue.

Short Run

A time period in economics during which at least one input is fixed and cannot be changed by the firm, contrasting with the long run where all inputs are variable.