Introduction to Economics 2 Deneme Sınavı Sorusu #349686
Which of the following is true for mercantilism?
Individuals are important
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Wealth consists of foreign exchange
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It is a socialist view
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Import should be higher than export |
It is a very recent concept |
In mercantilism, the basic idea is the wealth of society. But according to the socialist view, all production factors must belong to the governments and as a rule, all economic activities performed by the government constitute the basis. In Keynes’ studies, it is argued that fiscal policy tools must be used efficiently to end a recession. Accordingly, issues such as unemployment and inflation may be affected by taxation and spending policies, and serious slowdowns in economic activities and depressions may be prevented. Keynesian view charges the government to direct the economic life by fiscal policy. But in present time, with the effect of developments such as accelerating globalization and financialization, government shortens some of its functions while enlarging the scope of some of its tasks.
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