Mercantilism was the principle that:

• A. all resources should be owned collectively by society
• B. free markets and minimal government intervention lead to the most efficient allocation of resources
• C. prices are determined solely by consumer preferences
• D. a nation's wealth was measured by its stock of gold and silver, and governments should promote exports and restrict imports

Answer: (D)

Verified step by step guidance

1. Understand that mercantilism is an economic theory from the 16th to 18th centuries focused on national wealth accumulation.
2. Recognize that mercantilists believed a nation's wealth was primarily measured by its stock of precious metals, such as gold and silver.
3. Note that mercantilism advocates for government policies that promote exports to bring in gold and silver, while restricting imports to prevent wealth from leaving the country.
4. Contrast mercantilism with other economic ideas, such as free market principles where minimal government intervention is preferred, or the idea that prices are determined solely by consumer preferences.
5. Conclude that the correct definition of mercantilism is the belief that a nation's wealth is measured by its stock of gold and silver, and that governments should promote exports and restrict imports.