The theory that suggests that a country's wealth is based on the amount of gold it holds is called:
A) absolute advantage.
B) mercantilism.
C) comparative advantage.
D) factor-proportion.
E) Dutch factor.

Question

Quizplus · Accepted Answer

Mercantilism is the economic theory that trade generates wealth and is stimulated by the accumulation of profitable balances, which a government should encourage by means of protectionism. It suggests that a country's wealth is measured by the amount of gold and silver it has.

The Theory That Suggests That a Country's Wealth Is Based