History 6 Study Guide

Why is the Wealth of Nations studied today?

"The Wealth of Nations" is studied today because it is the most influential book on market economics studied today.

What are the nine points of the mercentalist economy?

- That every little bit of a country's soil be utilized for agriculture, mining or manufacturing. - That all raw materials found in a country be used in domestic manufacture, since finished goods have a higher value than raw materials. - That a large, working population be encouraged. - That all export of gold and silver be prohibited and all domestic money be kept in circulation. - That all imports of foreign goods be discouraged as much as possible. - That where certain imports are indispensable they be obtained at first hand, in exchange for other domestic goods instead of gold and silver. - That as much as possible, imports be confined to raw materials that can be finished [in the home country]. - That opportunities be constantly sought for selling a country's surplus manufactures to foreigners, so far as necessary, for gold and silver. - That no importation be allowed if such goods are sufficiently and suitably supplied at home.

What are some policies of the mercentalist economy?

- forbidding colonies to trade with other nations. - monopolizing markets with staple ports. - banning the export of gold and silver, even for payments. - forbidding trade to be carried in foreign ships, for example, the Navigation Acts. - subsidies on exports. - promoting manufacturing and industry through research or direct subsidies. - maximizing the use of domestic resources. -restricting domestic consumption through non-tariff barriers to trade.

What economy does America have today?

A mixed economy

What is the invisible hand?

A term that Adam Smith made used to describe the United Social benefits of individual self interested action.

Who believed in (laissez faire)?

Adam Smith

Who is considered the first champion of capitalism?

Adam Smith

Who is the author of the Wealth of Nations?

Adam Smith

Was Adam Smith a student of capitalism and the supporter? Explain.

Adam Smith was a student of capitalism and the supporter. He gave people ideas and terms what would help them understand the changes that were transforming their lives, and he is remembered today as capitalism's first great champion.

who is Adam Smith? explain.

Adam Smith was from Scotland. By the time he was born in 1723, Scotland was part of Great Britain and was prospering economically. Adam's parents saw to it that their son had a good education. He studied at the University of Glasgow famous for its fine, and Layton teachers. With a scholarship, at them also studied at Oxford in England. But he preferred his native Scotland. Soon, she was teaching at the University in Glasgow.

Where did Communism revolutions not occur?

America, Britain, Germany, France and the Netherlands.

Describe Capitalism.

An economic system in which investment in and ownership of the means of production, distribution, and exchange of wealth is made and maintained chiefly by private individuals or corporations, especially as contrasted to cooperatively or state-owned means of wealth.

How old is Capitalism? What did the Craftspeople merchants and Traders do to make a living?

As long as people have been around there a Ben crossword merchants and Traders who knew how to take or buy something cheap and sell it for a profit and in that sense capitalism is as old as civilization itself.

What did Charles Dickens do to try and solve the problems of the revolution?

Being a factory worker himself, he wrote books to inform the people of the hardships a factory worker endured during their time of work.

What did socialist thinkers believe?

Capitalism and its true form favor the factory owning class and is harmful to the working class. The working class must be treated fairly and humanely. The government should protect and serve the working class by providing money to Injured Workers, establishing a minimum wage law, regulate safety and workplaces, establish a maximum number of hours worked in a week time., Outlaw child labor, require School attendance for children, and make strikes legal

What does capitalism simulate?

Capitalism stimulates the production of cheaper and more efficiently made goods and services.

What happened in Europe and North America?

In Western Europe and in North America, men and women tried to apply the power of reason and common sense to whatever interested them or their questions were about the natural world or about the way human beings lived in it. Adam Smith was among the clearest and most insightful of these thinkers.

Did Marx and Engels theories and predictions about communism and come true?

In part, but, Communist revolutions did not occur in the industrialized nations as predicted.

How did Capitalism become powerful?

In the late eighteenth-century England and then ever since spread around the world.

Who were the new members of the ultra rich upper class?

Industrial Capitalists

What did industrial countries adopt?

Industrial countries eventually adopted Mixeo economy and were previously capitalist.

What did Karl Marx believe the workers would do?

Marx believed the workers would band together and rise up against the capitalists who held them in economic slavery. They would confiscate all private property and place it in the hands of a revolutionary government that would protect the workers interests.

What is a capital?

Money, or resources invested that help start up a business and help it grow

How successful was the capitalist ideal?

New society today has a pure and true capitalist economy. It is too harmful to the working class. Most countries in the world today have a form of capitalism known as a mixed economy in which the government make some decisions to protect and serve the working class. The United States has a mixed economy. Mixed economies are often times, however, refer to as capitalist economies.

How successful was the Communist ideal?

Not very because when people do not need to compete with 4 well, they often became lazy and do not work and process to their full potential. Technology therefore in communist countries lags behind capitalize countries because before lack the motivation to invent and develop new products. Cuba, North Korea, and Vietnam are the only remaining communist countries. They have achieved class-less societies but Unfortunately, are all poor!

What stayed the same and was not affected by the Revolution?

One change was that people were being replaced by machines and one thing that stayed the same is women's roles.

what did Robert Owen establish? was Robert Owen a socialist thinker?

Robert Owen was one of the Socialist thinkers were established the Utopias. This was in Indiana and was called New Harmony.

Communist revolutions did occur in?

Russia which would be Soviet Union in 1917 China and 1949 Korea and 1950 Vietnam in 1950s Cuba in late 1960s

Mark also did not count on the following happening in those communist societies?

Ruthless dictators who often times eliminated and killed people that opposed them. Dictators who use their powers to gain benefits for themselves and their clothes followers and equality was not achieved. Top 10 people did not want to willingly give up their property.

Where was the author of the Wealth of Nations from?

Scotland

Mixed economies are for the most part __________list. Socialist, Capitalist or Mercentalist?

Socialist

The Wealth of Nations is about a _________ economy.

Socialist economy

in general what did the Socialist thinkers of the Industrial Revolution believe?

Society's wealth should not be in the hands of a small privileged upper-class but be evenly divided among the people. The factory owners should share their wealth with the factory workers. They work to prevent the social problems that arose from the Industrial Revolution. Capitalism and its true form causes great harm.

What did Communist believe?

Communist believed the working class would rise up and over and throw the Ruling class and revolutions around the world

Why is division of labor important?

Division of labor is important because it distributes difficult jobs evenly among several people to make the job easier.

What gap was during the Industrial Revolution?

Due to the Industrial Revolution the gap between rich and poor grew at an alarming rate.

What is economics the study of?

Economics is the study of how societies use scarce resources to produce valuable commodities and distribute them among different people. Behind this definition are two key ideas in economics: that goods are scarce and that society must use its resources efficiently.

How did the European countries become rich during the Age of Exploration?

European countries became Rich during the Age of Exploration a shiploads of gold and silver cross the Atlantic Ocean from the conquest in the Americas. Many European countries grew Wealthy by enslaving or plundering defenseless and natives. Others grew wealthy through organized privacy. Still others brought precious Goods such as spices and sugar cane to European markets and gained great profits.

What did socialists believe factory owners should do with their profit made from the business?

The socialists believed the owners should use the money to take care of the workers.

What are goods sent and sold to other countries for a profit?

Exports

What are some of the hard ships of factory workers during this time?

Exposure to the pollutant, living in what would be like military barracks, how expendable the workers were.

What is (laissez faire)?

From the French, meaning the government should allow the marketplace to act or work all by itself.

What did Karl Marx believe the "haves" of the industrial era?

Marx believed the house of the industrial era were the bourgeoisie who were the upper and middle classes.

Karl Marx said that "have nots" were?

He believed the Have Nots were the much poor proletariat.

The author of the Wealth of Nations believed that when a factory owner makes a profit they should what?

He believed they should invest it back into the business.

How did Smith feel about the government-or anyone for that matter-interfering with this balance between supply and demand?

He felt that the government should do nothing to intervene to prevent unfair advantages.

what is the chronological order of the societies?

Humane Society, feudal society, French society, Industrial Revolution.

what law did Karl Marx discover?

Karl Marx Aletheia discovered a law about human affairs.

Who owns most property in capitalist societies?

Look It Up

Who owns most property in socialist societies?"

Look It Up

What year was the Wealth of Nations written?

March 9th 1776

what was Karl Marx first and second phases?

Mark's explain the first four years with involved the proletariat successfully revolting against the bourgeoisie and setting up a socialist government. Once everyone had become perfectly equal, a second phase would occur and the Communist economic order would emerge. And the Communist economy, society would be totally classless with no conflict or violence and police, courts, jails, and government would not be necessary.

what did Karl Marx believe capitalism naturally contained?

Marx believed that capitalism naturally contains the seeds of its own destruction. In the process of penetrating every aspect of modern society, capitalism eventually would result and a horribly unequal distribution of wealth.

what did Karl Marx think the human kind were moving toward?

Marx believed that humankind was moving toward a time where there would be better living conditions for everyone.

What impact did the Industrial Revolution have on the world?

The Industrial Revolution began in the late 18th and 19th centuries and was a period of significant economic development marked by the introduction of power-driven machinery. During the Industrial Revolution, many power-driven machines were invented, which replaced hand tools. This included the cotton gin, which was a machine used to separate cotton fibers and their seeds. The American inventor of the cotton gin was a man by the name of Eli Whitney. The cotton gin, along with new inventions in spinning and weaving, made the mass production of cloth possible and gave a big boost to the textile industry.This era also led to a large increase in the use of coal. Coal replaced wood and other fuel sources because it was abundant, efficient and required less work to mine than cutting wood. Coal was also used to make iron, which was used in the manufacturing of machines and tools, as well as the construction of ships and bridges. The Industrial Revolution also saw the development of the steam engine, which was an engine that used steam to perform work. Steam engines were used in transportation and to power factories.

What determines the worth of goods and services?

The Law of Supply and Demand.

What drives the capitalist to find all different kind of opportunities?

The determination to make money drives the capitalist to find all different kinds of opportunities.

What was the mercantilists theory?

The mercantilists theory was that a country could grow rich and Powerful by controlling trade.

What "class struggles" were they referring to?

They are referring to the struggles of The Haves and the "Have Nots" that has been going on since the beginning of time.

What was the life like for the working class during that time?

They lived in dirty cramped housing in the cities. Women and children were a source of cheap labor. Children as young as seven oftentimes dropped out of school to work slash earn money for the family. They are often abused mistrusted and mistreated by Factory owners slash upper class. I love desperation some resorted to stealing drunkenness and begging. And/or the long hours of work up to 70 hours a week and low wages. Many times the factories were unsafe. If I'm happy workers quit they were quickly replaced. A group known as the Luddites Protested the great changes flash fast new machine that had put them out of work by ransacking Factory / Mills and destroying machines

what did Karl Marx and Friedrich Engels say?

They said the history of all Society up to this point is the history of class struggles.

How would you describe the working class people who lived in the city?

They were poor factory workers with horrible living conditions and low wages.

What is the goal of every capitalist?

To make a profit.

Why were peaceful trades more reliable?

Ultimately Some leaders realize that peaceful trade was a more reliable way to keep an increase wealth than risking War.

What is a Utopias?

Utopias is a community designed to be "perfect". Harmony and Justice are the high ideals.

List two Mercentalist countries.

Western Europe and Germany.