Econ 3388 test 3

7.9 What is meant by "Nouveau France" ?

was the area colonized by France in North America.

7.8 Who was France's leading advocate of mercantilism?

In 1661, soon after Louis XIV ascended to power, Colbert (Jean-Baptiste Colbert) became France's principle minister and its leading advocate of mercantilism.

9.6 What happened to the population of Great Britain between 1700 and 1832?

Between 1700 and 1820, population more than doubled, from ten million to twenty-two million.

8.2 Who established the Royal Exchange in London in 1571?

Thomas Gresham

8.7 What is meant by David Hume's specie-flow mechanism? How does this specie-flow mechanism refute a basis tenet of mercantilism?

A model that illustrates how trade imbalances can self-correct and adjust under the gold standard. He countered the mercantilist idea that a nation should strive for a positive balance of trade.

8.10 Who were the Physiocrats? What was the basis of wealth according to the Physiocrats?

An alternative view of an economic system for the peasantry was offered by a group of economist-philosophers known as the Physiocrats. Led by the Frenchman François Quesnay, the Physiocrats contended that the warring, mercantile methods of the period were not appropriate to improve the lot of the people or a nation, but rather that collaboration and an organized division of labor would produce the most beneficial result for all.The theories of the Physiocrats were predicated upon the productive value of land as the source of economic wealth.

8.1 Who is the author of The System or Theory of the Trade of the World? What points does the author make regarding international trade?

Isaac Gervaise. He advocated a natural level for the trade balance, including avoidance of excessive credit, as well as the importance of trade as the means by which a nation can achieve its greatest wealth. Gervaise added important arguments to the idea that trade should be free and open, his work coming in the midst of a century of dialogue.

9.4 Who is considered to be the "father of supply-side economics" ?

Jean-Baptiste Say

7.4 What is the English equivalent of the French practice of engages?

Labor in the colonies of the northern European nations was initially provided by their own immigrants, indentured servants in the case of the English, also known as engagés by the French.

9.8 Who was the first person to create a successful mechanical textile factory in England?

Richard Arkwright