Which of these is true of the mercantilism policy?
a. It accepts gold as a medium of exchange.
b. It encourages free movement of labor and capital resources between nations.
c. It emphasizes government control over the production of important goods and services.
d. It emphasizes the importance of trade restrictions in achieving economic growth.
e. It believes that a nation's economic vitality depends on its unemployment level.
Question 2
A major characteristic of the theory of oligopoly is that:
a. there are no real-world examples.
b. the reactions of each firm depends on how the firm believes rivals will react.
c. in reality few oligopolies survive more than 10 years.
d. none of these.
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