ECS3705 Assignment
1 Semester 2 2025
(Answer Guide) -
Due 25 September
2025
QUESTIONS WITH 100%
VERIFIED AND
CERTIFIED ANSWERS.
, 1|Page
ECS3705 Assignment 1 Semester 2 2025 (Answer Guide) - Due 25 September
2025
VERIFIED AND CERTIFIED ANSWERS. WRITTEN IN REQUIRED FORMAT AND WITHIN
GIVEN GUIDELINES. IT IS GOOD TO USE AS A GUIDE AND FOR REFERENCE, NEVER
PLAGARIZE. Thank you and success in your academics.
UNISA, 2025
Contents
QUESTION 1 .............................................................................................................................................. 1
QUESTION 2 .............................................................................................................................................. 3
References .......................................................................................................................................... 5
QUESTION 1
The Mercantilist school of thought, which influenced European economic policy between
the sixteenth and eighteenth centuries, was one of the earliest systematic attempts to
understand and manage economic activity. At the core of Mercantilism was the belief
that national wealth was best measured by the quantity of precious metals, especially
gold and silver, held within a country (Magnusson, 2015). Unlike modern economic
theories, Mercantilists did not view wealth as something that could expand indefinitely
through innovation and production. Instead, they believed that wealth was limited, and
that nations had to compete with one another to secure their share of global resources
(Ekelund & Hébert, 2014). This worldview created a highly competitive and protectionist
economic environment where each state sought to maximise its own gains while
minimising those of its rivals.
In relation to wealth creation, Mercantilists emphasised the accumulation of bullion as
the primary means of strengthening a nation’s economy and ensuring political stability.
They argued that wealth could be created by achieving a favourable balance of trade,
meaning that exports should exceed imports so that precious metals could flow into the
1 Semester 2 2025
(Answer Guide) -
Due 25 September
2025
QUESTIONS WITH 100%
VERIFIED AND
CERTIFIED ANSWERS.
, 1|Page
ECS3705 Assignment 1 Semester 2 2025 (Answer Guide) - Due 25 September
2025
VERIFIED AND CERTIFIED ANSWERS. WRITTEN IN REQUIRED FORMAT AND WITHIN
GIVEN GUIDELINES. IT IS GOOD TO USE AS A GUIDE AND FOR REFERENCE, NEVER
PLAGARIZE. Thank you and success in your academics.
UNISA, 2025
Contents
QUESTION 1 .............................................................................................................................................. 1
QUESTION 2 .............................................................................................................................................. 3
References .......................................................................................................................................... 5
QUESTION 1
The Mercantilist school of thought, which influenced European economic policy between
the sixteenth and eighteenth centuries, was one of the earliest systematic attempts to
understand and manage economic activity. At the core of Mercantilism was the belief
that national wealth was best measured by the quantity of precious metals, especially
gold and silver, held within a country (Magnusson, 2015). Unlike modern economic
theories, Mercantilists did not view wealth as something that could expand indefinitely
through innovation and production. Instead, they believed that wealth was limited, and
that nations had to compete with one another to secure their share of global resources
(Ekelund & Hébert, 2014). This worldview created a highly competitive and protectionist
economic environment where each state sought to maximise its own gains while
minimising those of its rivals.
In relation to wealth creation, Mercantilists emphasised the accumulation of bullion as
the primary means of strengthening a nation’s economy and ensuring political stability.
They argued that wealth could be created by achieving a favourable balance of trade,
meaning that exports should exceed imports so that precious metals could flow into the
