Which of the following is true of the mercantilism policy?
A) It accepts gold as a medium of exchange.
B) It encourages the free movement of labor and capital resources between nations.
C) It emphasizes government control over the production of important goods and services.
D) It emphasizes the importance of trade restrictions in achieving economic growth.
E) It believes that a nation's economic vitality depends on its employment level.

Question

Quizplus · Accepted Answer

Mercantilism policy emphasizes the importance of trade restrictions such as tariffs, quotas, and subsidies in achieving economic growth. The goal is to increase exports and decrease imports to accumulate wealth, often in the form of gold and silver. This policy tends to emphasize protectionism and government control over the production of critical goods and services.

Which of the Following Is True of the Mercantilism Policy