An Inconsistency in the Mercantilist Doctrine,as Pointed Out by David

question 54

Multiple Choice

An inconsistency in the mercantilist doctrine,as pointed out by David Hume,is that:

• A) the volume of a country's imports increase as an indirect consequence of mercantilism.
• B) the exclusion of government influence in matters pertaining to trade is not ideal.
• C) in the long run, no country could sustain a surplus on the balance of trade.
• D) it was not backed by either sound political principles or social ideologies.
• E) trade is a zero-sum game rather than a positive-sum game as postulated by the theory.

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Definitions:

Equivalent Units

Equivalent units are a concept in cost accounting used to compute the number of units that could have been completed given the amount of work done, taking partially completed units into account.

Transferred-In Costs

Costs associated with units of product moved from one production process to another in the manufacturing cycle.

Prior Processing Department

A section within a manufacturing facility where raw materials undergo initial stages of processing before moving to subsequent phases of production.

Conversion Costs

The total expenses of manufacturing overhead and direct labor required to transform raw materials into completed products.