chapter 2 Flashcards
the general rules or principles guiding the production, distribution, and consumption of goods
laws of economics
aim was to build up the states treasury
mercantilism
the difference in value of the goods that a country sells abroad compared to those it purchases from other countries
trade balance
taxes that governments apply only to imported goods
tariffs
the establishment of colonies and extensive territories created to benefit their mother counties
imperialism
first group that made the first attempt to create a science of the production, distribution, and consumption of goods
the economist
favored natural economy, as opposed to the “unnatural” or “artificial” economy created by mercantilism
physiocrats
what does laissez-faire mean
let things alone
theories developed by economist of the 19th and 20th centuries that stated that the free market was the best possible economic system
classical economics
famous book written by Pierre Samuel du Pont
Physiocracy (the rule of nature)
founder of modern economics
Adam Smith
Adam smiths most famous book
The Wealth of Nations
the separation of work into individualized tasks
division of labor
production of goods by people doing the jobs they did best
specialization
six ways that nations have used in their attempts to increase wealth
produce more goods from existing sources
increase the amount of resources available
find new resources
make goods already being produced more effective
reduce peoples wants
redistribute foods that are already being produced
