Which statement differentiates feudalism from mercantilism?

• A. Mercantilism relied on subsistence agriculture
• B. Feudalism centered on land-based obligations and local production
• C. Mercantilism rejected colonies
• D. Feudalism had strong central trade policies

Answer: (B)

Feudalism organizes wealth and power around land and personal obligations tied to a manor, with peasants working the land and vassals serving lords; most economic life is local and self-sufficient. Mercantilism, by contrast, is a state-centered approach that treats wealth as something a nation builds through controlled trade, exports, and the use of colonies for raw materials and markets. This distinction—land-based obligations and local production versus centralized, trade-focused wealth accumulation—is what sets feudalism apart from mercantilism.

Subsistence agriculture describes a local, self-sufficient economy and isn’t the defining feature of mercantilism. Mercantilism did rely on colonies for resources and markets, so it isn’t accurate to say colonies were rejected. Feudal societies did not operate with strong centralized trade policies; trade was more limited and controlled by local lords, not a centralized state.