QUESTION
An inconsistency in the mercantilist doctrine, as pointed out by David Hume, is that:
A. the volume of a country’s imports increases as an indirect consequence of mercantilism.
B. the exclusion of government influence in matters pertaining to trade is not ideal.
C. in the long run, no country could sustain a surplus on the balance of trade.
D. it was not backed by either sound political principles or social ideologies.
E. trade is a zero-sum game rather than a positive-sum game as postulated by the theory.
ANSWER
C
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