Question

which of the following reflects the economic theory of mercantilism? select one: a. merchants should control the government because they contribute more than others to national wealth. b. the government should regulate economic activity so as to promote national power. c. the government should encourage manufacturing and commerce by keeping its hands off the economy. d. colonies existed as a place for the mother country to send raw materials to be turned into manufactured goods.

Answer 1

I think the correct answer from the choices listed above is option B. The theory of mercantalism is when the government should regulate economic activity so as to promote national power. It promoted governmental regulation of a nation's economy for the purpose of augmenting state power at the expense of rival national powers.