Question

Mercantilists wanted a favorable balance of trade, by which they meant a. exports = imports. b. exports > imports. c. exports < imports. d. To import nothing from the colonies.

Answer 1

Answer:

b. exports > imports.

Explanation:

Note that when a country's exports are less than imports of the country that is a case of unfavorable balance of trade.

So Mercantilists often aim to see excess of exports over imports which they believe means added income (exports) and less of expenditure ( imports).

Remember the balance of trade (BOT) looks at foreign exchange between countries.