, ECS3705 Assignment 1 (COMPLETE ANSWERS)
Semester 2 2025 - DUE 25 September 2025; 100%
TRUSTED Complete, trusted solutions and
explanations.
QUESTION 1 [18]
Having studied the Mercantilist school of thought, write a three-
paragraph essay discussing Mercantilist views on wealth creation,
wealth stimulation, and the role of government in the economy.
Mercantilist Views on Wealth Creation, Wealth Stimulation, and
the Role of Government
The Mercantilist school of thought, which dominated European
economic thinking between the 16th and 18th centuries, regarded wealth
creation as the accumulation of precious metals such as gold and silver.
Mercantilists believed that a nation’s prosperity and power depended on
its stock of bullion, which could only be increased through a favorable
balance of trade. This meant exporting more than importing so that gold
and silver would flow into the country. To them, wealth was seen as
finite, and nations were in constant competition to secure the largest
share.
With regard to wealth stimulation, Mercantilists emphasized active
participation in trade and industry. They encouraged the establishment
of domestic industries to produce goods locally, which would reduce
dependence on imports. Protective tariffs, subsidies for manufacturing,
and control over colonies were seen as essential tools to stimulate
production and secure raw materials. Colonies also provided markets for
finished goods, creating a cycle that supported domestic economic
activity while expanding national wealth and influence.
Semester 2 2025 - DUE 25 September 2025; 100%
TRUSTED Complete, trusted solutions and
explanations.
QUESTION 1 [18]
Having studied the Mercantilist school of thought, write a three-
paragraph essay discussing Mercantilist views on wealth creation,
wealth stimulation, and the role of government in the economy.
Mercantilist Views on Wealth Creation, Wealth Stimulation, and
the Role of Government
The Mercantilist school of thought, which dominated European
economic thinking between the 16th and 18th centuries, regarded wealth
creation as the accumulation of precious metals such as gold and silver.
Mercantilists believed that a nation’s prosperity and power depended on
its stock of bullion, which could only be increased through a favorable
balance of trade. This meant exporting more than importing so that gold
and silver would flow into the country. To them, wealth was seen as
finite, and nations were in constant competition to secure the largest
share.
With regard to wealth stimulation, Mercantilists emphasized active
participation in trade and industry. They encouraged the establishment
of domestic industries to produce goods locally, which would reduce
dependence on imports. Protective tariffs, subsidies for manufacturing,
and control over colonies were seen as essential tools to stimulate
production and secure raw materials. Colonies also provided markets for
finished goods, creating a cycle that supported domestic economic
activity while expanding national wealth and influence.
