Question

Mercantilism was a political-economic system that many European nations instituted in their American colonies to maximize their profits. Which of the following was a key element of mercantilism?(1 point)
Responses

Colonies produced finished goods using raw materials from Europe.
Colonies produced finished goods using raw materials from Europe.

Colonies were banned from free trade and supplied raw materials to their mother country.
Colonies were banned from free trade and supplied raw materials to their mother country.

Colonies directly benefited from the wealth gained from trade.
Colonies directly benefited from the wealth gained from trade.

Colonies were permitted to freely trade with other European nations.

Answer 1

Correct answer: Colonies were banned from free trade and supplied raw materials to their mother country.

Rationale: Under mercantilism colonies were expected to provide raw materials to the mother country and buy its manufactured goods. Colonial trade was tightly regulated to benefit the home nation’s wealth and balance of trade.