Which economic doctrine advocates stockpiling gold and silver and maintaining a favorable balance of trade?

• A. Liberalism
• B. Marxism
• C. Mercantilism
• D. Capitalism

Answer: (C)

Mercantilism emphasizes building national wealth by stockpiling gold and silver and by maintaining a favorable balance of trade. The idea is that wealth is best increased when a country exports more than it imports and when precious metals stay within the nation, often achieved through government intervention—tariffs, subsidies for exporters, and policies that favor domestic industries and colonies. This approach views wealth in terms of accumulated bullion and a strong trade surplus, with the state guiding economic activity to protect and grow national power. In contrast, liberalism favors free trade and limited government, Marxism centers on class struggle and communal ownership, and capitalism is the broad system of private property and market exchange rather than a specific bullion-focused strategy. So the doctrine described is mercantilism.