Which of the following best describes the primary goal of mercantilism after the 1600s?

• A. To promote free trade and reduce government intervention in the economy
• B. To support the development of socialist economic policies
• C. To encourage the equal distribution of income among all citizens
• D. To maximize a nation's wealth by accumulating precious metals through a favorable balance of trade

Answer: (D)

Verified step by step guidance

1. Understand the historical context of mercantilism, which was the dominant economic theory in Europe after the 1600s.
2. Recognize that mercantilism focused on increasing a nation's wealth primarily through the accumulation of precious metals like gold and silver.
3. Identify that mercantilists believed wealth was finite and that a favorable balance of trade (exporting more than importing) was essential to accumulate these metals.
4. Note that mercantilism involved significant government intervention to control trade policies, tariffs, and colonial expansion to achieve this goal.
5. Conclude that the primary goal of mercantilism was to maximize national wealth by ensuring a positive trade balance, rather than promoting free trade, socialism, or income equality.