Which of the following statements about mercantilism is accurate?

Question

Quizplus · Accepted Answer

Mercantilism involves government intervention in the economy to promote certain industries and protect them from foreign competition. It is based on the belief that a country's wealth and power were determined by its ability to export more than import. Therefore, the government would direct economic policy towards promoting exports and restricting imports, often through the use of tariffs and subsidies. This made certain industries more profitable, while others were neglected. Mercantilism did not mandate acceptance of unemployment and did not advocate for state intervention only during crises, as it was a consistent economic policy.

Which of the Following Statements About Mercantilism Is Accurate