All Flashcards
What was the significance of the publication of The Wealth of Nations in 1776?
Advocated for free markets, division of labor, and limited government intervention, influencing economic policy.
Describe the impact of the rise of Joint-Stock Banks.
Enabled large-scale projects by pooling capital and spurred economic growth.
What was the effect of the growth of Transnational Businesses?
Increased global trade, economic growth, and the spread of new technologies and infrastructure.
What was the effect of the rise of Stock Markets?
Allowed companies to raise capital and individuals to invest, driving economic expansion.
Describe the effect of Increased Consumerism.
Fueled economic growth but also contributed to social inequalities and a focus on material possessions.
What was the effect of the expansion of the Insurance industry?
Managed business risks, fostering stability and encouraging investment.
Describe the impact of the Navigation Acts.
Restricted colonial trade to the home country, a key feature of mercantilism.
What was the effect of Deregulation and Privatization?
Reduced government control over the economy, promoting free market principles.
What was the effect of the widening gap between classes?
Increased social tensions and spurred labor movements.
What was the effect of the rise of leisure time?
Led to changes in social norms with an emphasis on material possessions and leisure activities.
Compare Mercantilism and Laissez-faire.
Mercantilism involves government control and trade restrictions, while laissez-faire promotes free trade and minimal government intervention.
Compare the economic systems before and after the Industrial Revolution.
Before: Primarily agricultural and localized. After: Industrialized, globalized, and driven by technological innovation.
Compare the living conditions of the upper and working classes during the Industrial Revolution.
Upper class: Lived in luxury. Working class: Faced poverty, poor conditions, and exploitation.
Compare the role of government in mercantilist and laissez-faire economies.
Mercantilist: Government actively controls trade and the economy. Laissez-faire: Government has minimal intervention.
Compare the focus of economic activity before and after the rise of transnational businesses.
Before: Primarily domestic. After: Increasingly global, with businesses operating across multiple countries.
Compare the sources of wealth in a mercantilist and a laissez-faire economy.
Mercantilist: Accumulation of gold and silver through trade surpluses. Laissez-faire: Production, innovation, and free exchange.
Compare the impact of industrialization on urban and rural areas.
Urban: Rapid growth, industrial centers. Rural: Decline in agricultural employment, migration to cities.
Compare the economic opportunities available to different social classes during the Industrial Revolution.
Upper class: Accumulated wealth, owned businesses. Working class: Limited opportunities, low wages, and harsh working conditions.
Compare the role of technology in mercantilist and laissez-faire economies.
Mercantilist: Technology used to support trade and resource extraction. Laissez-faire: Technology drives innovation and economic growth.
Compare the level of economic inequality in mercantilist and laissez-faire societies.
Mercantilist: Inequality based on social hierarchy and government favor. Laissez-faire: Inequality driven by market forces and competition.
Who was Adam Smith?
A key figure of the Enlightenment and classical economics, known for The Wealth of Nations and the concept of the 'Invisible Hand'.
What were Adam Smith's key ideas?
Advocated for free trade, division of labor, and limited government intervention in the economy.