Mercantilism

Economics is concerned with the production, distribution and consumption of goods and services.

Types of Economies:

Traditional Command Market Mixed

Basic Questions: A community Decisions are Consumers decide Combines aspects
1. What goods based economy controlled by a what should be of the command
and services that is tied to centralized produced without and market
should be farming and power, typically a government economies. Most
produced hunting, where government. regulation are market
2. How should decisions are economies with
the goods and driven by culture government
services be and survival. control over key
produced? areas like
3. Who receives transportation,
and consumes defense, etc.
these goods
and services?

Mercantilism is an economic system developed to unify and increase the power and especially the
monetary wealth of a nation by a strict governmental regulation of the entire national economy usually
through

1. policies designed to secure an accumulation of gold and silver,

2. a favorable balance of trade,
3. the development of agriculture and manufactures,
4. and the establishment of foreign trading monopolies.
 Mercantilism
Economics is concerned with the production, distribution and consumption of goods and services.

Types of Economies:

Traditional Command Market Mixed

Basic Questions: A community Decisions are Consumers decide Combines aspects
4. What goods based economy controlled by a what should be of the command
and services that is tied to centralized produced without and market
should be farming and power, typically a government economies. Most
produced hunting, where government. regulation are market
5. How should decisions are economies with
the goods and driven by culture government
services be and survival. control over key
produced? areas like
6. Who receives transportation,
and consumes defense, etc.
these goods
and services?

Mercantilism is an economic system developed to unify and increase the power and especially the
monetary wealth of a nation by a strict governmental regulation of the entire national economy usually
through

1. policies designed to secure an accumulation of gold and silver, (assumes a zero-sum game)
2. a favorable balance of trade, (how one gets a bigger piece of the pie)
3. the development of agriculture and manufactures, (promote self-sufficiency through
colonization; raw materials from colonies and manufactured goods from the mother country)
4. and the establishment of foreign trading monopolies (protect domestic industries, incentives
through monopolies, tariffs/protectionism).