What effect did mercantilism have on the European economy?

Question

It limited the types of goods that could be sold.
It created wealth from goods sold to the colonies.
It created debt from importing expensive goods from the colonies.
It limited resources due to the high demand for goods.

Answer 1

Mercantilism had several effects on the European economy, but among the options you've provided, the most accurate would be:

It created wealth from goods sold to the colonies.

Mercantilism was an economic theory and practice that dominated European economic policy from the 16th to the 18th century. Under this system, nations sought to accumulate wealth, primarily gold and silver, by maximizing exports and minimizing imports. European countries established colonies primarily to provide raw materials and markets for manufactured goods. This system helped create wealth for the colonial powers by fostering trade and enabling them to sell their goods to colonists while extracting resources from the colonies.

The other statements you provided have varying degrees of accuracy but don't capture the primary economic effect of mercantilism as well as the one mentioned above.