Econ chap 6 Flashcards
This emerged from the renaissance period…
Mercantilism
Describe mercantilism
Wealth is based off an accumulation of goods. Trading was highly emphasized
By out-trading your national competitors, you would create a _________ _______ of __________
Favorable, balance, trade
Why was colonization important to mercantilism
-get more materials for production
-create a monopoly
What does Adam Smith believe is real wealth
Items that provide utility
According to Adam Smith what makes a nation wealthy?
The economic prosperity of its people
Describe Smiths invisible hand
The people who provide for themselves which in the grand scheme of things helps others
How did ballon payments aid in the real estate crisis of 2009
They prevented people from being able to pay off loans in the end, keeping them trapped
Collateral
An item of value pledge to secure loan
Co-signer
They take accountability for someone else’s unpaid debts
Student loans are…
An unsecured loan
Credit card fraud forms:
Phishing
Identity theft
Charity scams
Card cloning
distribute or allocate (costs, effort, etc.) unevenly, with the greater proportion at the beginning of the enterprise or process.
Frontloading
Hecloc
Line of credit
Adam smith wrote
The wealth of nations
Mercantilism
Was part of the enlightenment age, created over worked colonies
Radical capatilism has no
Government
Classical liberalism
-gov maintains public goods
-protect private citizens property
-gov supervision of well-being
Installment loan
Repay loan over interest term
Amortization
Payment schedule of interest and principle combined over the life of the loan
Front loaded
Distributed/ allocated(costs,effort,etc) unevenly
Monthly payments include
Principal + interest
Most ínstense form of capatilism
Welfare state
