1. Economic Effects of the Enlightenment French seaport in 1683

2. ________________________________________________________ ________________________________________________________ ________________________________________________________ ________________________________________________________ ________________________________________________________ ________________________________________________________ ________________________________________________________ ________________________________________________________ ________________________________________________________ ________________________________________________________ ________________________________________________________ Questions Notes: Mercantilism (Pre-Enlightenment Thinking) 1.1500-1800 was one of religious and commercial wars. 2.large revenues were needed to maintain armies and pay the growing costs of civil government. 3.Mercantilism-Economic policy of collecting bullion, establishing colonies, developing industries and maintaining a favorable balance of trade a)Bullion-quantities of gold and silver 4.The state exercised much control over economic life, chiefly through corporations and trading companies. 5.Treaties were made to obtain exclusive trading privileges, and the commerce of colonies was exploited for the benefit of the mother country.

4. ________________________________________________________ ________________________________________________________ ________________________________________________________ ________________________________________________________ ________________________________________________________ ________________________________________________________ ________________________________________________________ ________________________________________________________ ________________________________________________________ ________________________________________________________ ________________________________________________________ Questions Notes: Mercantilism (Pre-Enlightenment Thinking) 1.1500-1800 was one of religious and commercial wars. 2.large revenues were needed to maintain armies and pay the growing costs of civil government. 3.Mercantilism-Economic policy of collecting bullion establishing colonies, developing industries and maintaining a favorable balance of trade a)Bullion-quantities of gold and silver 4.The state exercised much control over economic life, chiefly through corporations and trading companies. 5.Treaties were made to obtain exclusive trading privileges, and the commerce of colonies was exploited for the benefit of the mother country. 6.Mercantilist ideas did not decline until the coming of the Industrial Revolution and of laissez-faire a)Laissez-faire-economic system functions best when there is no interference by government.

5. Mercantilism Mercantilism helped create trade patterns such as the triangular trade in the North Atlantic, in which raw materials were imported to the metropolis and then processed and redistributed to other colonies.

6. Adam Smith Opposed mercantilism as an economic system.

7. ________________________________________________________ ________________________________________________________ ________________________________________________________ ________________________________________________________ ________________________________________________________ ________________________________________________________ ________________________________________________________ ________________________________________________________ ________________________________________________________ ________________________________________________________ ________________________________________________________ Questions Notes: Capitalism (Post-Enlightenment Thinking) 1.Adam Smith a)Wrote the Wealth of Nations (1776) b)advocated free trade-Laissez-faire c)“the invisible hand” self-interest guides the most efficient use of resources in a nation's economy, with public welfare coming as a by- product. d)argued that consumption was the only way to grow an economy. e)A market economy could regulate itself through supply and demand.