What economic theory asserts that a nation’s wealth is determined by the balance of its exports and imports?

Mercantilism is the economic theory that posits that a nation's wealth and power are best served by increasing exports and collecting precious metals like gold and silver. This doctrine emphasizes a favorable balance of trade, where a country aims to sell more goods to other countries than it buys from them. The thinking behind mercantilism is that the more a nation exports, the more resources and wealth it accumulates, contributing to national strength.

In historical context, mercantilism was dominant in Europe from the 16th to the 18th centuries, influencing government policies and colonialism. By prioritizing exports over imports and fostering a strong, regulated economy, mercantilist thinkers believed countries could achieve self-sufficiency and economic independence. This perspective contrasts significantly with the other choices, which focus on different principles of ownership, wealth distribution, and economic organization, making mercantilism the correct answer in this context.