Questions: Select all of the following that accurately describe capitalism. Select all that apply. - is controlled by private ownership - was preceded by mercantilism - allows the government and individuals to gain great wealth - helped stabilize the balance of power in European countries

The correct answers are:

• is controlled by private ownership
• was preceded by mercantilism

Explanation for each option:

1. is controlled by private ownership: This is correct. Capitalism is an economic system where the means of production, such as factories and businesses, are owned and controlled by private individuals or corporations. The primary goal is to generate profit.

2. was preceded by mercantilism: This is correct. Capitalism emerged after the decline of mercantilism, which was the dominant economic theory in Europe from the 16th to the 18th century. Mercantilism focused on accumulating wealth through trade and maintaining a positive balance of trade, whereas capitalism emphasizes free markets and private ownership.

3. allows the government and individuals to gain great wealth: This is partially correct but misleading. While capitalism does allow individuals to gain great wealth, it typically does not focus on the government gaining wealth. In fact, capitalism often advocates for limited government intervention in the economy.

4. helped stabilize the balance of power in European countries: This is incorrect. Capitalism did not necessarily stabilize the balance of power in European countries. In fact, the rise of capitalism often led to significant social and economic changes, which could destabilize existing power structures. The Industrial Revolution, driven by capitalist principles, led to significant shifts in power and wealth, often causing social upheaval.

In summary, the accurate descriptions of capitalism from the given options are that it is controlled by private ownership and was preceded by mercantilism.