Chapter 1

Question 1

3 factors of capitalism

Answer 1

risk, inovation, invention

Question 2

business cycle

Answer 2

high slope= boom
low slope bust
events contribute to boom or bust

Question 3

3 indicators used to determine the business cycle

Answer 3

future leading
past lagging
present coincident

Question 4

Panicks

Answer 4

1819, 1840, 1853, 1873, 1890, 1906, 1930

Question 5

Mass Bay colony boom

Answer 5

Watertown
people imigrating to avoid king and wanted reformation
land boom 1630s and food boom
land grant ambition to clear more land
fairs and selling cows

Question 6

Mass Bay recesion

Answer 6

Cromwell- ref of church and state  
leads to less immigration
prices fell- overproduction
people returned to England
provision for por given 
families pulled out

Question 7

Keyne

Answer 7

sustained economy by lending money
church prosecuted for making minescual profit
wanted advancement of bible + conscience
Concience secondary

Question 8

Future Market

Answer 8

buying up excess stuff thinking might be valuable in the future

Question 9

Moneylenders

Answer 9

humanists

Question 10

Problems in germany for Ryff

Answer 10

Different currencies
saddle burn
custom tolls ex Busie + cologne

Question 11

Early France Market

Answer 11

• have books but erattic about how they keep track of sales e.g zero,
• sometimes ust write down description of person
• cheating
• royal taxes

Question 12

100 year war results

Answer 12

-king philip needs money
-pope comes to avignon and provides reneue
-kicks out the Jews in lumbarb
Knights Templar becomes money
Pope Clemet V courrptable betrays knights for money

Question 13

Scientific Revolution

Answer 13

precapitalist saw birth of printing press, paper mill, windmill, mechanical clock, map, and other inventions including invention
not over night change

Question 14

Leviathan

Answer 14

-Thomas Hobbes in 1651
Etching shows immense figure, king, sword, royal sceptrer, armor engraves with human being
-Only way for Universal Soveringty, submit to king, over king and freedom
-Social Contract Hobbes
-argument political no econ
-prevents humans from falling into conditions as “solitary, poore, nasty, brutish, and short.”
-vissions start as economic basis
-Worry of trading would be net loss of gold
-Wanted government to control trade to ensure net gain.

Question 15

England’s Treasure by Forraign Trade

Answer 15

“ordinary means” for a nation to trade is to sell more than consume.”

Question 16

Agents of Economic Progress Exploration

Answer 16

Explorers such as Christopher Columbus, Cortés, and Drake.

Mercnatilists who brought back gold to the state

Question 17

National political units in Europe

Answer 17

Isolated Feudalism gave way to centralized monarchies
Lead to national spirit
favored certain industries, luxury goods, and army goods
gave way to better law and measruements to help mercahnts
Foreign adventure and explorers

Question 18

Decay of Religion

Answer 18

Rise of Protestantism -which said it was okay to be a merchant
Rise of merchants gradually made it okay

Question 19

Agents of production

Answer 19

Land labor capital

Question 20

Middle Ages market

Answer 20

Ran through command and tradition. Ruled by lords

Question 21

Cloth weaver France 1666

Answer 21

To try a new invention, obtain permission from 4 oldest merchants and 4 oldest weavers. Each guilde makes own thing. Gov fines if step out of line

Question 22

Can a Christian be a merchant?

Answer 22

No

Question 23

Fuggers

Answer 23

No body wanted big business when Anton fugger died

Question 24

Market system

Answer 24

Each should do what was best for their monetary advantage

Question 25

Fuedal system

Answer 25

Created towns & roads
People familiar with buying & selling
Money went merchants who knew about money from nobels who did not

Question 26

Mississippi company

Answer 26

John Law sold shares of company that would mine gold in America
Hotel waiter will become rich
When structure collapsed, government tried to send beggars
Change from couple of people to mobs
Money hungry people
Birth of market system