Mercantilism is described as what?

Mercantilism is described as what?

• A. A system of global trade with multiple restrictions
• B. Laissez-faire capitalism
• C. Free trade among nations
• D. A gold standard system

Answer: (A)

Mercantilism emphasizes government involvement in trade with the aim of building national wealth through a favorable balance of trade and the accumulation of precious metals. To achieve this, states impose restrictions and controls—tariffs, quotas, licensing, monopolies, and navigation acts—and often direct colonial economies to serve the home country. This focus on protection and regulation across global commerce is what defines the system. So the description fits a system of global trade with multiple restrictions. The other options describe different economic approaches: laissez-faire capitalism advocates minimal government intervention; free trade among nations rejects protectionist rules; a gold standard is a monetary system, not an overall trade doctrine.

Mercantilism emphasizes government involvement in trade with the aim of building national wealth through a favorable balance of trade and the accumulation of precious metals. To achieve this, states impose restrictions and controls—tariffs, quotas, licensing, monopolies, and navigation acts—and often direct colonial economies to serve the home country. This focus on protection and regulation across global commerce is what defines the system.

So the description fits a system of global trade with multiple restrictions. The other options describe different economic approaches: laissez-faire capitalism advocates minimal government intervention; free trade among nations rejects protectionist rules; a gold standard is a monetary system, not an overall trade doctrine.