By trying to be self-sufficient and producing a wide range of goods,_____ policies reduce the wealth of a nation in the long run.
A) absolute advantage
B) laissez faire
C) free trade
D) mercantilist

Question

By trying to be self-sufficient and producing a wide range of goods,_____ policies reduce the wealth of a nation in the long run.
A) absolute advantage 
B) laissez faire 
C) free trade 
D) mercantilist

Quizplus · Accepted Answer

Mercantilist policies focus on trying to be self-sufficient and producing a wide range of goods domestically, while limiting imports from foreign countries. However, this approach ultimately reduces the wealth of a nation in the long run, as it stifles competition and innovation, raises prices for consumers, and limits access to new technology and ideas. Free trade, on the other hand, allows nations to specialize in producing goods where they have a comparative advantage, leading to greater efficiency, lower prices, and increased economic growth overall.

By Trying to Be Self-Sufficient and Producing a Wide Range