1. Mercantilism

2. The prevailing economic theory in the 1600 & 1700s was mercantilism

4. Characteristics of Mercantilism
A nation’s wealth is measured by the
amount of gold & silver in its country

5. Characteristics of Mercantilism
A nation should export more than it imports

6. A trade surplus: exports > imports A trade balance: exports = imports A trade deficit: exports < imports

7. Characteristics of Mercantilism
The government should place tariffs on imports

8. Characteristics of Mercantilism
The government should allow only unfinished products (raw materials) to be imported

9. Characteristics of Mercantilism
The government prohibits finished products to be imported

10. Characteristics of Mercantilism
The government should subsidize key industries

11. Characteristics of Mercantilism
The government takes an active role in
the economy

12. Protectionism is the modern-day equivalent to mercantilism

13. Mercantilism is the opposite of laissez-faire

14. Laissez-Faire is free enterprise
Laissez-Faire is free enterprise. Businesses compete for consumer dollars without much government regulation/intervention.