Explain the concept of free trade and how it differs from mercantilism.
What will be an ideal response?
Answer: The difference between free trade and mercantilism is that there is no government intervention in free trade. With mercantilism, there is an emphasis towards generating wealth and strengthening national power. This can take away from an individual's choices to do what is beneficial for them. Free trade argues that there is an invisible hand that profits the individual unintentionally. Through looking at an individual's self-interests, this benefits society as a whole according to the Invisible Hand theory associated with free trade.
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Indicate whether the statement is true or false
A check that a bank draws on its own funds is called a
a. traveler's check b. cashier's check c. money order d. certified check.