Author Question: How does liberalism compare with mercantilism? A) Liberalism is not concerned with whether one ... (Read 81 times)

Awilson837 · **on:** Sep 4, 2018

How does liberalism compare with mercantilism?

A) Liberalism is not concerned with whether one state gains more or less than another, just whether the state's wealth is increasing in absolute terms, whereas mercantilism emphasizes that each state must protect its own interests at the expense of others.
B) Liberalism emphasizes conflicting interests in economic exchanges, whereas mercantilism emphasizes shared interests.
C) Liberalism asserts that the most important goal is the creation of the most favorable possible distribution of wealth, whereas mercantilism asserts that the most important goal of economic policy is the maximum creation of total wealth.
D) Liberalism advocates a role for politics in market processes, whereas mercantilism advocates for market processes to be relatively unhindered by political elements.

Question 2

Protectionism hurts an economy in which of the following ways?

A) Consumers usually pay higher prices for products.
B) Domestic industries become more efficient.
C) Domestic industries become more competitive.
D) It leads to a declining balance of trade.