Mercantilism
What is a Papal Bull?
A Papal Bull is a formal document issued by the Pope, typically containing decrees, bulls, or other edicts.
What is absolute advantage?
Absolute advantage refers to the ability of a country or individual to produce a good or service more efficiently than any other country or individual. This means that the country or individual can produce the good or service at a lower cost or with a greater output than any other country or individual.
What was the First Industrial Revolution based around
Based around steam power
What does GDP stand for
Gross Domestic Product
What is the main goal of Mercantilism?
The main goal of Mercantilism is to increase a nation's wealth and power by building up its stock of gold and silver through a favorable balance of trade (exports exceeding imports).
What is comparative advantage?
Comparative advantage refers to the ability of a country or individual to produce a good or service at a lower opportunity cost than any other country or individual. This means that the country or individual can produce the good or service at a lower cost in terms of the resources (such as labor or capital) that must be given up to produce other goods or services.
What was the Second industrial revolution based around?
Based on electrical power
True or Falues, Small, rich countries, and more developed industrial countries have a low per capita GDP
False, They tend to have the highest per capita GDP.
Mercantilism was the dominant economic policy during what centuries?
16th century to the 18th century
How can a country benefit from comparative advantage?
A country can benefit from comparative advantage by specializing in the production of goods or services in which it has a comparative advantage, and then trading for other goods or services with other countries. By specializing in the production of goods or services in which it has a comparative advantage, a country can produce these goods or services at a lower opportunity cost, which means it can produce them at a lower cost in terms of the resources that must be given up to produce other goods or services. By then trading for other goods or services, a country can gain access to a greater variety of goods and services than it could produce on its own.
Increased use of what durning the First Industrial Revolutions?
Machine tools
Water power
Factory system
What does Political Milieu mean?
relating to the state, government, the body politic, public administration, policy-making
Why did Mercantilism lose popularity?
Mercantilism lost popularity as it was criticized for its lack of economic rationality, it led to the exploitation of colonies and mercantilist policies were seen as responsible for the stagnation of economies. Also, the new economic theories like Physiocracy and classical economics emerged and challenged the Mercantilist beliefs.
How does comparative advantage lead to gains from trade?
Comparative advantage leads to gains from trade by allowing countries to specialize in the production of goods and services in which they have a comparative advantage and then trade with other countries for goods and services in which they do not have a comparative advantage. This allows each country to produce goods and services at a lower opportunity cost and to consume a greater variety of goods and services than it could produce on its own. As a result, both countries can benefit from trade and enjoy a higher standard of living.
Part of our economic development involved 2 negative things, What are they?
the use of child labour and poor working conditions
Reasons for the Great Divergence
Cultural Factors, Political Milieu, Mercantilism, Geography
Under the theory of Mercantilism, how was wealth defined?
wealth is viewed as finite and trade as a zero-sum game
How are absolute advantage and comparative advantage related?
Absolute advantage and comparative advantage are related in that a country or individual with an absolute advantage in the production of a good or service also has a comparative advantage in that good or service. However, a country or individual can have a comparative advantage in a good or service even if it does not have an absolute advantage in that good or service.
Which factors caused the population of Europe to soar between 1800 and 1900?
The population soared because the death rate fell, not because more babies were born.
What does Per capita GDP mean?
Means adjusting GDP for the size of a country's population.