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2

Economics

2. Economic Principles and Problems: Answer the following questions.

a. What were the major institutional factors that spurred the development of capitalism in England? Which of these factors do you think was most important?

b. Smith was an opponent of Mercantilist governments. What role (if any) does Adam Smith envision for government in a Capitalist economy?

c. Why was Adam Smith critical of Mercantilism? Why did he think Capitalism was preferable to Mercantilism?

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