Question

Why did economists think in terms of a national economy?(3marks)​

Answer 1

Explanation:

Economists began to think in terms of the national economy. They talked of how the nation could develop and what economic measures could help forge this nation together.It aimed to bind the German people economically as a nation by removing the economic barriers to their interaction.

Answer 2

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Economists began to think in terms of the national economy. They talked of how the nation could develop and what economic measures could help forge this nation together.

a. Since the first half of the nineteenth century due to Napoleons' administrative measures, witnessed many principalities with their distinctive economic policies, different currencies, weights and measures. All this served as economic barriers and a major hindrance to free trade.

b. Thus, In 1834 Zollverein, a customs union was formed at the initiative of Prussia which was joined by most of the German states. It abolished tariff barriers and reduced the number of currencies from thirty-two to just two.

c. Zollverein economists believed sought to introduce uniformity in order to remove obstacles to economic growth in the region and brought about greater integration of economies. It aimed to bind the German people economically as a nation by removing the economic barriers to their interaction.

d. It was felt that reducing internal barriers would stimulate production inside the region. Collusion of regional and provincial interests would, in the end, prevail to create a national collective identity based upon the feeling of togetherness.

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