TestUstad

Mercantilism ?

Correct answer: B. Was a system of export promotion and barriers to imports practiced by governments?

  • A. Is the philosophy of free international trade?
  • B. Was a system of export promotion and barriers to imports practiced by governments?
  • C. Was praised by Adam Smith in the Wealth of Nations
  • D. Both (a) and (c)

Explanation

Mercantilism promoted exports and restricted imports through government intervention, with the aim of accumulating national wealth and precious metals. It was opposed by Adam Smith's case for freer trade, not praised by him.

Written and checked by , editorLast updated
Report an error

The more specific you are, the faster it gets fixed. A source beats an opinion.

Prefer email? [email protected]

About Microeconomics

Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.

Practise Microeconomics

1,742 free Microeconomics MCQs from Economics, each with the correct answer and an explanation. Unlimited attempts, no account needed.

Start a free Microeconomics testAll Microeconomics MCQs

Discussion

Stuck on an option, or know a faster way to get there? Ask or explain it here.

No comments yet. Be the first to explain this one.

Exams that ask Economics questions like this

Economics is on 3 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.

Lecturer Economics Test Economics80 MCQsCA PRC Economics20 MCQsFBR Economics15 MCQs

More Microeconomics questions

The gains from international trade are closely related to ?

In the classical model of Ricardo, the direction of trade is determined by ?

Comparative advantage is determined by ?

If the international terms of trade settle at a level that is between each country's opportunity cost ?

The earliest statement of the principle of comparative advantage is associated with ?

G. MacDougall's empirical results can be interpreted as ?