MLM Directory

Which of the following ideas is central to mercantilism?

A. Protectionism and regulation are the best ways to keep nations prosperous. B. Colonial trade tends to weaken empires. C. Free markets lead to national wealth. D. There is an unlimited amount of wealth in the world. E. Colonies should concentrate on manufacturing, not on exporting raw materials.

Public Comments

1. A is correct. B is wrong because the entire point of setting up colonies was to expand empires, increase trade, and profit. C is wrong because it's a central tenet of Adam Smith's economic treatise "An Inquiry into the Nature and Causes of the Wealth of Nations", which promoted lassiez-faire style capitalism, not mercantilism. D is wrong because a premise of mercantilism is that there is a LIMITED amount of wealth, and the nation that hoarded the most gold would be the wealthiest. E is wrong because, again, the point of colonies was to establish reliable sources for raw materials, as well as finished goods made with those materials.
2. i feel the most applicable answer is A.
3. F. All of the above. Or maybe it's F for Failure, as in, you failed to study for your homework. I forget.
4. A. Mercantilism is all about government managment of business for the benefit of the government.