Which of the following statements is TRUE of the economic theory of mercantilism?
A) According to this theory, a nation's prosperity depends on its human capital.
B) This theory discourages import and export and advocates that a nation be self-sufficient.
C) This theory rejects the idea that the government should play a role in the economy.
D) According to this theory, governments should encourage exports and discourage imports.

Question

Quizplus · Accepted Answer

The economic theory of mercantilism states that a nation's wealth and power depend on its ability to export more than it imports. Therefore, governments should encourage exports and discourage imports to maintain a positive balance of trade. This theory also advocates for protectionist policies, such as tariffs and subsidies, to promote domestic industries and discourage foreign competition.

Which of the Following Statements Is TRUE of the Economic