Which of the following best describes Mercantilism?

Mercantilism is best described as a theory that advocates for a balance of trade surplus. This economic philosophy, prevalent from the 16th to the 18th centuries, posits that a country's power is directly related to its wealth, which is primarily accumulated through a favorable balance of trade—meaning exports should exceed imports. The underlying belief is that a surplus would enhance a nation's stock of gold and silver, ultimately strengthening the economy and allowing for increased political power.

In the context of Mercantilism, countries would often implement protectionist policies to achieve this surplus, including tariffs on imports and subsidies for exports. This focus on a surplus was a central tenet, as it was believed to bolster national wealth and security.

The other choices, while touching on aspects of economic theory or policies, do not accurately capture the essence of Mercantilism. Modern economic theories emphasizing free trade, focusing on technological innovation, or policy-driven economic development reflect different ideologies or approaches that emerged after the period of Mercantilism. These alternatives highlight other strategies for economic growth and international relations than the surplus-oriented focus of Mercantilism.