The main economic system in Europe before the Industrial Revolution was feudalism. This system was characterized by a hierarchy where land was held by nobles who granted parcels to vassals in exchange for military service and labor. Peasants or serfs worked the land and provided agricultural products. Feudalism emphasized agrarian output, with economic power concentrated in the hands of landowners. The transition to capitalism and industrial economies marked a significant shift from this centuries-old system, impacting social structures and economic practices.