How does mercantilism compare with a free enterprise system?
a. mercantilism promotes a agricultural economies, while the free enterprises system promotes industrial economies.
b. mercantilism s based on economic regulation, while the free enterprise system is based on economic freedom.
c. mercantilism encourages international trade, while the free enterprise system places limits on import and exports.
d. mercantilism seeks to create a society without classes, while the free enterprise system allows for social inequalities.

The correct answer is B. Mercantilism is based on economic regulation, while the free enterprise system is based on economic freedom.

The mercantilist system poses a strong state intervention in the economy, with production control, tariffs on certain types of goods and limits on the importation of products.

On the other hand, the free enterprise system is an economic system based on the private ownership of the means of production and autonomous and free of state control business management, where the allocation of productive resources is done in a decentralized manner obeying the decisions of thousands of economic agents who act guided by their own interest.

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