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.
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.
What were the causes and effects of the shift from Mercantilism to Laissez-faire?
Causes: Enlightenment ideas, desire for economic freedom. Effects: Increased trade, economic growth, but also potential for exploitation.
What were the causes and effects of new banking practices?
Causes: Need for capital for large-scale projects. Effects: Economic growth, increased investment, and global financial networks.
What were the causes and effects of the Industrial Revolution?
Causes: Technological innovations, access to resources, and a supportive economic climate. Effects: Mass production, urbanization, and new social classes.
What were the causes and effects of the rise of consumerism?
Causes: Increased disposable income, mass production of goods. Effects: Economic growth, but also social inequalities and environmental concerns.
What were the causes and effects of the Wealthier Populations?
Causes: Industrial production, trade, and technological advancements. Effects: Emerging middle class, consumerism, and changes in social norms.
What were the causes and effects of the Widening Gap Between Classes?
Causes: Unequal distribution of wealth, exploitation of workers. Effects: Social tensions, labor movements, and calls for reform.
What were the causes and effects of the rise of Joint-Stock Companies?
Causes: Need for large capital investments. Effects: Increased economic activity, expansion of businesses, and global trade.
What were the causes and effects of the Financial Instruments?
Causes: Need for managing risk and facilitating investment. Effects: Increased economic stability, investment opportunities, and business growth.
What were the causes and effects of the rise of Transnational Businesses?
Causes: Globalization, technological advancements. Effects: Increased global trade, economic interdependence, and cultural exchange.
What were the causes and effects of the rise of Stock Markets?
Causes: Desire for investment opportunities, need for capital. Effects: Increased economic activity, business expansion, and financial speculation.
