Question

1. Contrast and compare the mercantilist and physiocrats approaches to analyzing an economy?

Answer 1

By the 18th century the Physiocrats were challenging the intensive state intervention... ... Whereas mercantilists held that each nation must regulate trade and manufacture to increase its wealth and power, the physiocrats contended that labour and commerce should be freed from all restraint.

Capitalism is an economic system that works around the concept of wealth creation in the pursuit of economic growth for the nation while mercantilism focuses on wealth accumulation through extraction of wealth which they believe is measured by the amount of gold bullions that the nation has in its possession.