Mercantilism believes that a nation’s wealth depends on its stock of natural resources.

Mercantilism is an economic philosophy advocating that countries should simultaneously _________________exports and _________________ imports.? encourage, discourage |discourage, encourage |discourage, discourage|encourage, encourage

Which of the following is a major flaw associated with mercantilism? A: Mercantilists do not support government intervention in trade B: Mercantilists view trade as a zero-sum game. C: Mercantilists recommend policies to maximize imports. D: Mercantilists recommend countries to maintain a negative trade balance.

_______explains how mutually beneficial trade can take place even when one nation is less efficient than another nation in the production of all commodities.（ ） A: Mercantilism B: The law of comparative advantage C: The labor theory of value D: The law of absolute advantage