Economics and Founding outline (pt. 1)

Economics and Founding outline (pt. 1) - ) B. Interest vs...

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Economics and the Founding I I. Mercantilism (English system, 1500-1800) A. Government should regulate the economy to increase the revenue of the crown 1. Colonies exist for the benefit of the mother country B. Method: Navigation Acts 1. Trade must be carried in English ships 2. Enumerated goods C. Wealth = the amount of gold or silver in a nation’s treasury II. Market system (capitalism) (Adam Smith, Wealth of Nations, 1776) A. Govt. should keep hands off ( laissez-faire
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Unformatted text preview: ) B. Interest vs benevolence C. Wealth = the yearly production and consumption of a country (per capita income) III. How an economy operates: A. Exchange 1. Simple exchange (barter) 2. Money a. Negates need for coincidence of wants 3. Specialization a. Allows expansion of market B. Competition 1. Interest of buyer and seller conflict; competition curbs interest 2. Supply and Demand 3. Equilibrium price 4. Profit and loss as economic signals...
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This note was uploaded on 07/14/2011 for the course AM ST 101 taught by Professor Smith during the Fall '04 term at BYU.

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Economics and Founding outline (pt. 1) - ) B. Interest vs...

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