Which of the Following Is NOT Consistent with the Central

question 92

Multiple Choice

Which of the following is NOT consistent with the central beliefs of mercantilism?

• A)Government should intervene to achieve a surplus in the balance of trade.
• B)Policies should be put in place to minimize exports and maximize imports.
• C)Imports should be limited by tariffs and quotas.
• D)Exports should be subsidizeD.

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Definitions:

Retail Value

The price point at which goods are sold to consumers, typically set higher than the wholesale price to cover costs and generate profit.

Average Cost Retail Inventory Method

An inventory valuation method that determines the cost of ending inventory and cost of goods sold based on the average cost of all similar items in the inventory.

Cost-to-retail Percentage

A method used in inventory valuation that compares the cost of goods to their retail price to calculate inventory value.

Purchases Returns

Goods returned by the buyer to the supplier due to defects, damage, or other reasons, which can reduce the total amount of purchases.