How did Adam Smith believe the economic system known as mercantilism limited potential economic growth?

A. It caused governments to increase the supply of goods beyond the level of their demand.

B. It limited the choices that producers and consumers could make when choosing trade partners.

C. It allowed the government to tax producers with the highest levels of productivity.

D. It forced merchants to sell their goods in foreign rather than domestic markets.

Question

Jayden

English

27 May, 04:10

How did Adam Smith believe the economic system known as mercantilism limited potential economic growth?

A. It caused governments to increase the supply of goods beyond the level of their demand.

B. It limited the choices that producers and consumers could make when choosing trade partners.

C. It allowed the government to tax producers with the highest levels of productivity.

D. It forced merchants to sell their goods in foreign rather than domestic markets.

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Eleanor Stevens · Answer 1

Adam Smith believed the economic system known as mercantilism limited potential economic growth because it limited the choices that producers and consumers could make when choosing trade partners.