🎓 CLEP Exam Prep

The economic theory of mercantilism, widely practiced by European colonial powers in the 17th and 18th centuries, primarily held that:

A Colonies should be free to trade with any nation they chose.
B A nation's wealth and power were best increased by accumulating gold and silver and maintaining a favorable balance of trade.
C Economic activity should be entirely unregulated by the government.
D Colonies existed primarily to develop their own self-sufficient economies.

✓ Correct Answer: Option B

Mercantilism dictated that colonies existed to enrich the mother country by providing raw materials and markets, ensuring a favorable balance of trade and the accumulation of specie (gold/silver) for the imperial power.

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