Question

An economic system in which the government attempted to accumulate wealth as hard currency (silver or gold) was known as ___. A accruing B free trade

C mercantilism D subsidized E taxation

Answer 1

The correct answer is option C. Mercantilism, because the Mercantilism was the most important economic system during the 16th until 18th centuries in Europe, which was based on the theory that the totality of world wealth was fixed or static, so due to that, it was necessary that the countries collect the much possible quantity from that wealth, increasing exportations and accumulating precious metals such as gold or silver, to assure a strong and stable economy in their countries.

Answer 2

The correct answer is option C "mercantilism". One of the characteristics of mercantilism as an economic system is that the national economic policy is aimed at the accumulation of monetary reserves. This is an old system that is not longer used in developed countries as historically this approach led to war and colonial expansion.