Which economic system describes raw goods being sent to the home country to be processed and then finished goods sold back to the colony?

• A. Mercantalism
• B. Economy
• C. Merchant
• D. Voyageur

Answer: (A)

Mercantilism is an economic system built on accumulating wealth by controlling trade. In this setup, a mother country uses its colonies to supply raw materials—like minerals, timber, or agricultural products—and then sends those materials home to be processed into finished goods. Those finished goods are sold back to the colonies and other markets, keeping wealth and profits within the mother country and aiming for a favorable balance of trade. This arrangement strengthens the home country’s economy and power by tightly controlling resources and trade routes.

Other options don’t describe the whole system. An economy is a broad term for how a country uses resources, not a specific colonial policy. A merchant refers to a person who buys and sells goods, not the overarching system. A voyageur is a fur-trade worker, not the economic framework guiding colonial commerce.