100%(14)14 out of 14 people found this document helpful
This preview shows page 1 - 2 out of 2 pages.
2.5 European Motivations and Early Advances into the New WorldWhich of the following best describes the economic theory of mercantilism?It’s based on the premise that all gold should be spent as quickly as possible on raw materials for use in production.It’s based on the private ownership of the production and distribution of goods.It’s based on the premise that a country’s raw materials should be used to make finished products within its borders in order to maximize profit.Points:1 / 1Close ExplanationExplanation:Mercantilism is an economic theory based on the premise that a country’s raw materials should be used to make finished products within the country in order to maximize profit, because finished products command a higher price. European monarchs consolidated their wealth and power with mercantilist policies by requiring that their colonies must send all raw materials to and purchase all finished products from manufacturers in the mother country. Mercantilism is the opposite of free trade,