Question

Determine whether each statement best describes capitalism or mercantilism.

It is an economic

system that relies

on a free market.

The government is

in control of the

nation’s economy.

It requires a nation

to export goods

worth more than the

goods it imports.

The government

doesn’t get

involved with the

economy.

Answer 1

Smith attacked government intervention in the economy and provided a blueprint for free markets and free trade. These two principles eventually would become the hallmarks of modern capitalism.

Step-by-step explanation: