In early modern economic thought, mercantilism was the principle that a nation should pursue which overall economic policy to increase its wealth and power?

Introduction / Context:
Mercantilism was a dominant economic doctrine in Europe from roughly the sixteenth to the eighteenth centuries. It guided the trade policies of many kingdoms, especially those with expanding colonial empires. Understanding mercantilism helps explain why European states were so focused on controlling colonies, trade routes and precious metals. General knowledge questions often summarise mercantilism through its core principles about wealth, trade and government intervention.

Given Data / Assumptions:

• The question asks what mercantilism, as a principle, advocated for national economic policy.
• Options mention business relations and wealth, favourable balance of trade, and protective measures such as tariffs and subsidies.
• One option offers all of these ideas combined.
• We assume basic awareness that mercantilism is about state controlled trade to enrich the nation.

Concept / Approach:
Mercantilists believed that national power depended on accumulating wealth, often measured in gold and silver. They saw international trade as a competitive arena where one state's gain was another's loss. To succeed, they promoted policies that increased exports and limited imports, thereby creating a favourable balance of trade. Governments encouraged domestic industries through subsidies and protected them with tariffs and other restrictions on foreign goods. These elements work together to define mercantilism, so the correct answer needs to combine them rather than pick only one.

Step-by-Step Solution:
Step 1: Recall that mercantilism emphasised national wealth and power, not free trade or minimal government.Step 2: Recognise that a favourable balance of trade, with more exports than imports, was a central mercantilist goal.Step 3: Remember that states used tools such as tariffs, navigation laws and subsidies to push trade in directions that served national interests.Step 4: Examine the options and note that each of the first three describes one important aspect of mercantilist policy.Step 5: Identify that the last option states that all of the above together represent mercantilism.Step 6: Choose the combined answer, because mercantilism was not limited to a single technique but was a broader economic strategy.

Verification / Alternative check:
Textbooks that describe mercantilism usually highlight three things: measuring wealth by precious metals, seeking a favourable trade balance, and using state power to regulate and control trade. Examples include navigation acts that restricted colonial trade to the mother country and subsidies to local industries to outcompete foreign producers. Since all of these features appear in the first three options, the best summary is the one that includes them all rather than treating them as separate principles.

Why Other Options Are Wrong:
Option A is incomplete because it mentions wealth and business relations but does not explicitly state the importance of a favourable trade balance or the role of protectionist policies. Option B focuses only on the trade balance, which is central but not the entire doctrine. Option C stresses government intervention but leaves out the underlying goals of wealth accumulation and positive trade flows. Each of these by itself captures only part of the story.

Common Pitfalls:
Students sometimes reduce mercantilism to a single slogan such as export more than you import. While that is a helpful shortcut, it can hide the broader framework that includes how states tried to control colonial trade and support local industries. Another pitfall is to confuse mercantilism with modern free trade ideas, which actually argue the opposite about tariffs and government involvement. Keeping the three main elements together prevents these misunderstandings.

Final Answer:
Mercantilism was the principle that a nation should accumulate wealth, maintain a favourable balance of trade and use protectionist measures such as subsidies and tariffs to strengthen its economy, so all of the listed ideas together describe it.