Final answer:
Scutage was a feudal tax that allowed lords to pay a fee instead of providing military service, which demonstrated the monetization and expansion of the commercial economy. It enabled lords to focus on increasing economic activities and supported the growth of a cash-based economy, signaling the rise of national markets and professional armies.
Step-by-step explanation:
Scutage was a sign of the expansion of the commercial economy as it evolved from a system where feudal lords provided military service to one where they could instead pay a fee (scutage or shield money).
This fee signified that the economy was becoming sufficiently monetized to allow for such transactions. With the advent of scutage, lords and knights who were more interested in commerce or lacked the inclination to fight could pay this fee and invest their resources and time in economic activities, further bolstering the commercial economy.
Instead of direct military service, nobles could focus on commercial pursuits such as trade, land development, or money lending. The introduction of scutage also facilitated the rise of professional armies that required funding, which in turn reinforced the importance of monetary transactions and a cash-based economy. This shift was part of a larger trend of increased economic activity and greater market integration that included the prolific growth of trade and market centers, a burgeoning merchant class, and the development of national economies.
As the medieval market economy grew, so too did commercial taxes and monopolies on commodities like salt, tea, iron, and wine, increasing state revenue and encouraging further trading and mercantile activities. Government reliance on commercial taxes underlined the critical role trade played in the larger economic framework of the period.