Understanding Mercantilism and Its Impact

What economic system supported the shift towards absolutism in Europe?

• Socialism

• Mercantilism

• Feudalism

• Capitalism

How does a command economy differ from a market economy?

• Command economy is driven by private decisions, while market economy is state-driven.

• Command economy is state-driven, while market economy is driven by private decisions.

• Both are driven by private decisions.

• Both are state-driven.

In mercantilism, what is considered the measure of wealth?

• Gold and silver

• Military strength

• Population size

• Land ownership

Why did mercantilism lead to intense rivalries among European states?

• Because wealth was seen as finite, like a pie with limited slices.

• Because wealth was seen as infinite.

• Because states wanted to share wealth equally.

• Because states were uninterested in wealth.

What is a key strategy for maintaining a favorable balance of trade in mercantilism?

• Focusing solely on domestic trade

• Importing more goods than exporting

• Equal import and export

• Exporting more goods than importing