Understanding Mercantilism

What is the primary goal of mercantilism?

• To increase imports

• To reduce exports

• To eliminate trade barriers

• To maintain a favorable trade balance

Which book by Adam Smith highlighted the practices of mercantilism?

• The Invisible Hand

• The Principles of Economics

• The Wealth of Nations

• The Theory of Moral Sentiments

Why was gold considered important during the mercantilist period?

• It was used to fund military and symbolize wealth

• It was abundant and easy to acquire

• It was used primarily for jewelry

• It was a common currency in all colonies

What is a key characteristic of mercantilism regarding wealth?

• Wealth is infinite

• Wealth is static

• Wealth is irrelevant

• Wealth is only in the form of land

How did mercantilist nations view trade with their colonies?

• As a method to reduce gold reserves

• As a way to promote free trade

• As a means to ensure a net transfer of wealth

• As a way to import more goods

What was the purpose of the British Navigation Act of 1651?

• To promote trade with France

• To ban all imports

• To restrict trade to British ships

• To allow free trade with all nations

Who was John Baptist Colbert and what did he implement?

• A Spanish king who banned all trade

• A British explorer who discovered new trade routes

• A French minister who implemented mercantilist policies

• An American economist who critiqued mercantilism

What was a major flaw of mercantilism according to Adam Smith?

• It encouraged too much trade

• It viewed trade as a zero-sum game

• It promoted excessive imports

• It relied too heavily on technology

What is neo-mercantilism?

• A method to eliminate tariffs

• A strategy to increase imports

• A modern form of protectionism

• A policy promoting free trade

Which country is often cited as practicing modern mercantilist policies?

• Brazil

• Germany

• China

• Australia