Which of the Following Is Consistent with the Central Beliefs

question 40

Multiple Choice

Which of the following is consistent with the central beliefs of mercantilism?

• A)A country's government should intervene to achieve a surplus in the balance of trade.
• B)A large volume of trade is essential regardless of whether it comes from imports or exports.
• C)Trade is a positive-sum game in which all countries benefit from trading with each other.
• D)A country that has an absolute advantage in the production of all goods derives no benefits from international trade.
• E)Potential world production is greater with unrestricted free trade than it is with restricted trade.

---

Definitions:

Equilibrium

A state in a market where supply equals demand, and there is no external pressure to change the price or quantity.

Wheat Industry

A sector of the economy focused on the production, processing, and distribution of wheat and wheat-based products.

Partial Equilibrium Analysis

The process of examining the equilibrium conditions in individual markets and for households and firms separately.

Consumer Preferences

Refers to the subjective tastes and opinions that influence an individual's purchasing decisions.