Capitalism replaces Mercantilism

1. a.Capitalism- the free enterprise system of economics
b.Merchantism-an economic system based on the idea that a country becomes strong by having wealth and strict government and market control

2. The wealth of nations was published in 1776

3 It changed the government because it started off from merchantism and then went to capitalism. It was a dramatic impact because all of a sudden the government let the people do want they wanted

4. When Smith mentioned the invisible hand he meant that in a free market, no regulation of any type would be needed to ensure that the mutually beneficial exchange of goods and services took place, since this "invisible hand" would guide market participants to trade in the most mutually beneficial manner.