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

question 5

Multiple Choice

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

• A)it indirectly helped increase volume of a country's imports.
• B)it presented a crude case for exclusion of government in matters pertaining to exports and imports.
• C)no country could sustain a surplus on the balance of trade.
• D)it was not backed by either sound political principles or social ideologies.

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Definitions:

Expected NPV

Projected Net Present Value; an estimation of a project's current value based on expected future cash flows discounted at the project's cost of capital.

Efficient Market

A financial market theory suggesting that asset prices fully reflect all available information, making it impossible to consistently achieve higher than average returns.

Insider Trading Laws

Regulations that prohibit the trading of a company's stocks or other securities by individuals with access to non-public, material information about the company.

Market Efficiency

The degree to which stock prices and other securities prices fully reflect all available information and are accurate reflections of the true value of investments.