Question

The British theory of mercantilism, by which the colonies were governed, held that

Answer 1

1. Letter C is the correct answer.

2. Letter E is the correct answer.

Mercantilism was an economic system used by European powers from the 16th to the 18th centuries. This system was responsible for generating wealth to national powers while colonies were being strongly explored. According to the British theory of mercantilism, the colonies should be carefully controlled in order to support the metropole's needs. Thus, taxing colonial goods at a higher rate than the same goods produced in Britain was a mercantilist strategy found that served the home country's needs and harmed the colonial economy at the same time.