See Smith study guide below.

1. What was (or is) “mercantilism”?

2. How did the British practice mercantilism during the 18^th Century?  Familiarize yourself both with the trade patterns of the colonial era, and the British laws designed to foster mercantilism.  What was the role of the North American Colonies? 

3. What sorts of laws and regulations did the British impose, and why? 

4. Analyze the “great discouragements” to British sugar planters mentioned in the Molasses Act.

5. In reading the selections about mercantilism, pay particular attention to the different  authors, and note their DIFFERENT views.  Some of the authors represent strictly the British position, some (the colonial governors) take more of an interest in the welfare of the colonies.  How do their views differ?  In particular, how closely does each author adhere to the core principles of mercantilism?

6. Adam Smith, while British, expresses views which have been called “radical”.  What was so radical about what he had to say?

1. Discuss the relationship between the British and American corn industries.

2. What is Smith's invisible hand?  (This is one of the most often quoted parts of the Wealth of Nations.)

3. What is the point of the “grapes in Scotland” discussion on p. 354?

4. Summarize Smith's two justifications, and two other possible justifications for imposing or continuing a tariff.

5. Does Smith agree with the “infant industry” justification for protection?

6. What does Smith have to say about the mobility of the factors of production, especially labor? (p. 367ff)