How does mercantilism differ from capitalism or the free enterprise system?

Answer 1

Mercantilism allows governments to control economies, while capitalism gives individual more economic control. -Apex 2.4.2 test

Answer 2

Mercantilism is an economic system where the government controls the economy through policies such as tariffs, subsidies, and monopolies to increase national wealth and power. Capitalism, on the other hand, is an economic system where the means of production are privately owned and operated for profit, with minimal government intervention. The free enterprise system is similar to capitalism but emphasizes competition, consumer choice, and limited government regulation. In summary, mercantilism relies on government control, capitalism on private ownership, and the free enterprise system on competition and consumer choice.

Answer 3

Mercantilism and capitalism are two distinct economic systems that have shaped the course of history. Mercantilism, prevalent in Europe during the 16th to 18th centuries, advocated for a strong government control over economic activities to accumulate wealth and power for the nation-state.

It emphasized foreign trade surpluses through protectionist measures, such as tariffs and colonies, and sought to hoard precious metals like gold and silver. On the other hand, capitalism emerged as a response to the limitations of mercantilism in promoting individual freedom and maximizing efficiency.

Capitalism is characterized by private ownership of resources, free markets, competition, profit motive, and minimal government intervention. It encourages entrepreneurship, innovation, risk-taking, and supply-demand interactions as drivers of economic growth.

Unlike mercantilism's focus on accumulating tangible assets, capitalism promotes investment in human capital, infrastructure development, and technological advancements for long-term prosperity.

While both systems aim for economic prosperity in different ways, capitalism's emphasis on individual freedom and market forces sets it apart from mercantilism's centralized state control approach.

Answer 4

It’s actually “Mercantilism is based on economic regulation, while capitalism is based on economic freedom” -2023

Answer 5

Mercantilism is based on economic regulation, while the free enterprise system is based on economic freedom.