Actually, I had the same experience when I first played Civ 4

. Back in the original civ you only had to build farms and roads - there were no cottages, so the decision was greatly simplified. In the current game there are 2 ways you can go on economy:
1. Cottage Economy (CE)
For the general commerce city (gold and research production) I usually go for about 4 squares which produce more than 2 food. These can be farmed grasslands, special tiles, floodplains, you name it. All other grasslands get cottages. For hills, I will usually mine everything until I can make windmills at which point I switch over, maybe leave a mine or two if things build too slow. Plains are usually farmed too unless the city has alot of plains and a few high food producing tiles, in which case I'd cottage a one or two plains as well. Also until you get beaurocracy, just cottage everything that cannot be farmed in sight. All these cities produce a hefty sum of gold after they grow up but will not make many hammers so go for a few production cities that are just all farms and mines - a nice area for something like this would be an inland area with all grassland tiles and a bunch of hills and maybe some juicy resources. Given your country size, I'd only make 1 production city if you are building a small compact peaceful country let's say 6 or so cities, obviously more as you get bigger. Obviously, this is just a rough idea, you have to adapt to the terrain you're given and keep in mind what world wonders and national wonders you are likely to build and where. If there is an awesome flat area of grasslands covered in forests and a river, build a city there and hold onto the forests for your national park

. Think about what is the best coastal location for your moiai statues, which of your production cities deserves the ironworks, and which is going to be your military base with the heroic epic and west point. Now for wonders, if you are having major early money problems try and get a religious shrine ASAP, just build a temple and put a good old priest to work

. Also if you have a primarily coastal country (which would be ideal if you are playing the dutch), the Great Lighthouse can really make a ton of money early on. Finally, remember not to overexpand. If your science rate is under 60%, do not build anymore cities (unless it is just way tooo juicey to pass up the spot), until you can get a possitive cash flow back. Finally, try and get Universal Sufferage ASAP as the bonus hammers from all your towns (and you should have plenty of them as you've cottaged since the beginning of the game right!) make all your commerce cities quite productive, and free market obviously helps too. Merchantilism is really for the specialist economy.
2. Specialist Economy (SE)
I'm still a newbie on this one! I just read a great article from this website on it a day ago, and am still working on my first game with SE as Pericles on a huge terra map, marathon, 18 civs - and it is a blast

.
http://forums.civfanatics.com/showthread.php?t=197818
I hope this helps and good luck

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