QUESTION IMAGE
Question
which of these actions would be encouraged under a capitalist system but discouraged under a mercantilist system?
a. encouraging workers to move from farms to big cities
b. importing cheap consumer goods from foreign countries
c. selling expensive luxury goods to foreign consumers
d. placing limits on the types of products sold in a country
Capitalism encourages free - market trade and consumer - driven choices, including importing goods. Mercantilism aims to accumulate wealth through a favorable balance of trade and often restricts imports to protect domestic industries. Encouraging workers to move to cities is not a core difference between the two. Selling luxury goods to foreigners is supported by both in terms of export benefits. Placing limits on products sold is more in line with mercantilist protectionism.
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B. Importing cheap consumer goods from foreign countries