Balance of Payments in International Economics
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Questions and Answers

According to the passage, which economic theory attacked the mercantilist dogma first?

  • Quantity theory of money (correct)
  • Neutrality of money
  • The theory of comparative advantage
  • Say's Law
  • During the mercantilist era, what did countries favor in order to make themselves wealthier?

  • Financial integration between nations
  • Hoarding of precious metals
  • Exporting their own goods to run balance of payments surpluses (correct)
  • Accumulating foreign exchange
  • Who accused mercantilists of being anti-free trade and confusing money with wealth?

  • David Hume
  • David Ricardo
  • Barry Eichengree
  • Adam Smith (correct)
  • What did Great Britain begin promoting after victory in the Napoleonic wars?

    <p>Free trade</p> Signup and view all the answers

    According to historian Carroll Quigley, what factors allowed Great Britain to act benevolently in the 19th century?

    <p>Geographical location and naval power</p> Signup and view all the answers

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