Mercantilism and Capitalism
Economists
European economic thinkers
Bullion
Gold and Silver
Merchants
businessmen who became wealthy due to increased trade/ become the "new" middle class
Entrepreneurs
businessmen willing to risk money in hopes of earning a profit
Favorable Balance of Trade
countries want to export more than they import
Mother Country
country of origin of settlers or colonists/ European country: England, France, Spain, Portugal, and the Netherlands
Profits
difference between the amount earned and the amount spent
Mercantilism
economic policy where Mother Countries wanted to increase their wealth and power by obtaining large amounts of gold and silver (bullion) and by selling more goods than they bought
Capitalism
economic system based on private ownership, free trade, private property, little to no government interference
Free Enterprise
freedom of private businesses to compete for profits without government involvement
Markets
place for people to buy or sell
Feudalism
political system in which nobles are granted the use of lands that legally belong to their king, in exchange for their loyalty, military service, and protection of the people who live on the land/ no international trade/ manors were self-sufficient
Market Economy
prices of goods are controlled by supply and demand
Finished Products
products that have been made into something by using natural resources/raw materials
Raw Materials/Natural Resources
resources used to make goods
Middle Class
social class made up of skilled workers, professionals, business people, and wealthy farmers
Economics
study of how societies decide what to produce, how to produce it, and how to distribute what they produce/how a country deals with money
Tariff
tax on imports
International Trade
the exchange of capital (money) and goods over borders
Imports
what a country buys
Exports
what a country sells