Question

According to Adam Smith, how did the government regulation of trade limit economic growth under the system of mercantilism? A. It caused a decline in the importance of the agricultural economy. B. It prevented the expansion of trade with other countries. C. It led a higher taxes that limited businesses ability to produce goods. D. It encouraged countries to export rather than import goods.

Answer 1

"It prevented the expansion of trade with other countries" is the way Adam Smith thought that the government regulation of trade limit economic growth under the system of mercantilism. The correct option among all the options that are given in the question is the second option or option "B".

Answer 2

The correct answer is B. It prevented the expansion of trade with other countries

He believed that government regulation should not meddle in economics and that a free trade market is necessary.