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What is Mercantilism?
Economic policy where government controls trade, uses high tariffs, and aims to export more than import.
What is Laissez-faire?
Economic policy advocating free trade, limited government intervention, and individual freedoms.
What is the Invisible Hand?
Adam Smith's concept that the economy self-regulates when individuals pursue their self-interest.
What is Division of Labor?
Specialization of tasks to increase productivity.
What are Joint-Stock Banks?
Banks that pool money from multiple investors for large projects.
What is Limited Liability?
Shareholders are only responsible for the amount of their investment, limiting personal risk.
What are Transnational Businesses?
Companies that operate in multiple countries.
What is a Stock Market?
A place where shares of companies are bought and sold, representing part ownership.
What is Consumerism?
The increased purchase and consumption of non-essential goods.
What are Investment Trusts?
Pooled money from various investors to diversify investments.
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.
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.