Which statement best describes Mercantilism?

• A. Free exchange and open markets
• B. Expanding democracy and citizen participation
• C. Controlling trade and accumulating gold, with colonies supporting the mother country
• D. Reducing government spending on military

Answer: (C)

Mercantilism centers on building national wealth through state-directed control of trade and the accumulation of precious metals, with colonies playing a key role as sources of raw materials and as markets for the mother country. The idea is that a nation thrives by exporting more than it imports and by keeping gold and silver within its borders, using government power to achieve a favorable balance of trade and strong economic power. The statement that emphasizes controlling trade and accumulating gold, with colonies supporting the mother country, captures this focus on state regulation of commerce and the colonial link that underpins wealth and power in mercantilist thought.

The other descriptions miss that core setup: free exchange and open markets undermine mercantilist protectionism; democracy expansion is not about economic policy; and reducing military spending contradicts the mercantilist emphasis on power, security, and the protective state apparatus needed to enforce trade controls.