Which of the following is not correct regarding assumptions of mercantilism?

Mercantilism is an economic theory that emphasizes the importance of accumulating wealth, specifically gold and silver, through a favorable balance of trade. It holds that a nation should export more than it imports to achieve prosperity and maintain national strength.

The assertion that a nation should try to increase its imports is contrary to the fundamental principles of mercantilism, which prioritize exporting goods to bolster national wealth. In this economic framework, high imports would lead to outflows of valuable resources and diminish the wealth of the nation, which directly opposes the goal of achieving a trade surplus.

Additionally, the other statements reflect key tenets of mercantilist theory. Colonies are indeed seen as extensions of the mother country, primarily serving to enhance its economic standing. Trade surpluses are viewed as instrumental in increasing national wealth, while government intervention is often seen as necessary to protect domestic industries and regulate trade to maintain these surpluses. These principles outline the mercantilist belief that government and economy should be closely intertwined to achieve national prosperity.