Which statement best describes the economic principle of mercantilism?

The statement that mercantilism is best described as selling more abroad than you import captures one of the core principles of this economic theory. Mercantilism emerged in the late medieval period and dominated economic thought until the rise of classical liberalism in the late 18th century. It emphasizes the importance of accumulating wealth, primarily gold and silver, through a positive balance of trade. This means that a country should export more goods than it imports, thus generating a surplus that adds to its national wealth.

Under mercantilist policy, governments often took an active role in regulating the economy to promote exports and limit imports, which aligns with the idea of strengthening the nation's financial power through trade. Restrictions on imports, along with subsidies or incentives for exports, were common practices aimed at achieving this favorable balance.

In contrast, the other options represent ideas that either fundamentally misinterpret the objectives of mercantilism or reflect philosophies that arose later. Encouraging free trade between nations contradicts the protective and interventionist nature of mercantilism, where nations sought to control trade and limit competition. Similarly, reducing government intervention in the economy goes against the mercantilist approach that relies heavily on state regulation and control over commerce. Therefore, the notion of selling more abroad than importing succinct