What is the correct definition of mercantilism?

Question

Responses (explain your answer)

the idea that trade laws should not be strictly enforced

the rule that goods had to be transported to American colonies on British ships

the belief that money made in the colonies should benefit the mother country

the idea that trade among more countries makes them all wealthier

Answer 1

The correct definition of mercantilism is "the belief that money made in the colonies should benefit the mother country."

Explanation: Mercantilism is an economic theory and practice that was prevalent from the 16th to the 18th centuries, primarily in Europe. It posits that a nation's wealth and power are best served by increasing exports and collecting precious metals like gold and silver. Under mercantilist policy, colonies existed primarily to benefit the mother country by providing raw materials and serving as markets for the mother country’s goods. This theory emphasized the accumulation of wealth through a favorable balance of trade and the idea that the economic interests of the mother country should take precedence over those of the colonies. Other responses do not accurately represent mercantilism's core principles.