Chapter 2

Question 1

Mercantilism was coined as “mercantile
system”, by

Answer 1

Adam Smith

Question 2

Notable Mercantilists of this era:

Answer 2

William Petty
John Locke
Sir Josiah Child
Jean Baptiste Colbert
Jacques Necker

Question 3

was more fragmented than its trade policy. Governments provided capital to new industries, exempted new industries from the rules imposed by guilds, granted titles and pensions to successful producers, and established monopolies over local and
colonial markets

Answer 3

Mercantilist Domestic Policy

Question 4

this act forbade foreign vessels from trading along the British coast and required colonial exports to first pass through British control before being redistributed throughout Europe.

Answer 4

Navigation Act of 1651

Question 5

policy of protecting domestic industries against foreign competition by means of tariffs, subsidies, import quotas, or other restrictions or handicaps placed on the imports of foreign competitors

Answer 5

Protectionism

Question 6

Mercantilists did not believe there were __________ from trade, where both
exporters and importers benefited.

Answer 6

mutual gains

Question 7

exporters always win, importers always lose, so export as much as possible, import as little as possible

Answer 7

zero-sum game

Question 8

And the role of the State was to actively help out in this endeavor ;

Answer 8

Legally, financially, and militarily