1. What was the European economy like in the late Middle Ages?

2. What were the characteristics of mercantilism? Who had the most power under a mercantilist system?

3. Why did economies change during the Industrial Revolution?

4. Explain the basic principles of capitalism, as outlined by Adam Smith in the late 18th century.

5. How did capitalism affect the lives of the middle class and the lower classes?

6. Why do you think economies might be more efficient under capitalism than under mercantilism?

7. According to Adam Smith's The Wealth of Nations, how can self-interest help the public good?

8. Discuss some of the drawbacks of capitalism, or the free enterprise system.