Which best describes how European powers of the 16th century used the economic theory of mercantilism to grow their wealth?
A) European nations maximized the sale of exports and established tariffs to restrict colonies from trading with foreign nations.
B) European nations aimed to increase taxes on merchants, believing this would increase revenue and the nation’s wealth
C) European nations minimized the sale of exports and banned tariffs that restricted their colonies from trading with foreign nations.
D) European nations aimed to decrease taxes for merchants, believing this would increase trade and spur the economy.
I believe it is B
A is correct.
I do not think B but I live near Boston.
To determine the correct answer, we need to understand the basics of mercantilism and how European powers used this economic theory to grow their wealth in the 16th century.
Mercantilism was an economic philosophy prevalent in Europe during the 16th to 18th centuries. Its main goal was to increase the wealth and power of the nation by promoting a favorable balance of trade, where a country exports more than it imports. Here's how European powers used mercantilism to grow their wealth:
A) European nations maximized the sale of exports and established tariffs to restrict colonies from trading with foreign nations.
This answer describes the key elements of mercantilism accurately. European nations aimed to produce and export as many goods as possible, generating revenue from these sales. Moreover, they established tariffs, or taxes on imported goods, to protect domestic industries from foreign competition and encourage consumers to buy locally produced goods. By restricting their colonies from trading with foreign nations through tariffs, European powers ensured a captive market for their goods, thus growing their wealth.
B) European nations aimed to increase taxes on merchants, believing this would increase revenue and the nation’s wealth.
This answer is incorrect. While mercantilist policies involved various taxes and regulations, increasing taxes on merchants was not the primary focus. Mercantilism sought to encourage exports and accumulation of wealth rather than burdening merchants with increased taxes.
C) European nations minimized the sale of exports and banned tariffs that restricted their colonies from trading with foreign nations.
This answer is incorrect. Mercantilism aimed to maximize the sale of exports, not minimize them. Additionally, European powers did the opposite of banning tariffs; they established tariffs to protect their domestic industries.
D) European nations aimed to decrease taxes for merchants, believing this would increase trade and spur the economy.
This answer is also incorrect. While reducing taxes on merchants might have been beneficial for trade and the economy, it was not a central tenet of mercantilism. The focus was on maximizing exports and accumulating wealth rather than reducing taxes for merchants.
Therefore, the correct answer is A) European nations maximized the sale of exports and established tariffs to restrict colonies from trading with foreign nations.
https://www.britannica.com/topic/mercantilism
Read carefully, and let us know if you change your mind.