Theory of mercantilism
Explain what was the theory of mercantilism?
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Mercantilism was the economic philosophy underlying English colonial policy. The objective of mercantilism was to increase the wealth of the Mother County (Great Britain) in silver and gold. To accomplish that goal, a satisfactory balance of trade was desired. Which means that a nation would sell more than it would purchase, thus making extra in the capital. The philosophy name points out the importance of merchants in this policy. Merchants would sell the products to foreign countries and purchased items to be sold within the country. Gatherings played a vital role in mercantilism. A colony would provide the required raw materials to the industries of England and the colonists would be a source of income to the nation because they would buy the finished products and supplies they desired to grow, from the Mother Country. The ideal was to become self-sufficient. The nation would give everything to its people according to its need and buy nothing from foreign countries. As the ideal could not be accomplished in the real world of economics, the purpose of mercantilism was to reduce imports that cost money and maximize exports and the trade that brought money in the nation.
Types of elasticity of supply: There are five kinds of elasticity of supply:1. Perfectly elastic supply: Q : Point of hiring labor for profit The entire profit maximizing firm will hire additional labor up to the point where the: (i) Average physical product of the labor equivalents the nominal wage. (ii) Last unit of labor adds equally to net revenue and net cost. (iii) Marginal product of the labor is at
The entire profit maximizing firm will hire additional labor up to the point where the: (i) Average physical product of the labor equivalents the nominal wage. (ii) Last unit of labor adds equally to net revenue and net cost. (iii) Marginal product of the labor is at
I have a problem in economics on Power of monopsonist. Please help me in the given question. The firm which is the sole buyer of a specific good or resource is a: (i) Monopsonist. (ii) Plutocracy. (iii) Bilateral monopolist. (iv) Price discriminator.
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Short-run market supply curve of a competitive industry is derived by summing all the firms’: (1) average cost curves vertically. (2) short-run supply curves horizontally. (3) production capacities along with the resources available. (4) individ
All currency issued by central bank is its monetary liability. Explain how? Answer: The Central Bank is grateful to back the currency with assets of equivalent valu
As the price falls by P4 to P3 to P2 to P1 beside such demand curve for Pixie's cheesy fried grits, then total revenue: (w) always rises. (x) always falls. (y) rises then falls. (z) falls then rises. Q : Characteristics of pure monopoly This This is untrue that a firm which is a pure monopoly: (1) commonly engages in extensive advertising to differentiate its products. (2) produces a level of output which is closer to socially optimal when this price discriminates. (3) is the sole produce
This is untrue that a firm which is a pure monopoly: (1) commonly engages in extensive advertising to differentiate its products. (2) produces a level of output which is closer to socially optimal when this price discriminates. (3) is the sole produce
I have a problem in economics on Change in relative price. Please help me in the following question. The Substitution takes place all along a demand curve when there is a: (1) Rapid shortage of a required product. (2) Increase in the common price level. (3) Change in
For Cournot’s Spring Water the demand is relatively price inelastic at: (i) point a. (ii) point b. (iii) point c (iv) point d. (v) point e. Discover Q & A Leading Solution Library Avail More Than 1421965 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads No hassle, Instant Access Start Discovering 18,76,764 1935515 Asked 3,689 Active Tutors 1421965 Questions Answered Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!! Submit Assignment
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