Ch. 2 Economic laws Flashcards
The general rules or principles guiding the production distribution and consumption of goods
Laws of economics
Economic system with an aim to build up the state’s treasury
Mercantilism
The difference in value of goods that a country sells abroad compared to those it purchases from other countries
Trade balance
The establishment of colonies and extensive territories created to benefit their mother country
Imperialism
Taxes that governments apply only to imported goods
Tariffs
People that favored a natural economy as opposed to the unnatural economy created by mercantilism
Physiocrats
French phrase meaning let things alone
Laissez-faire
Stated that the free market was the best possible economic system
Classical economics
The founder of modern economics
Adam Smith
The separation of work into individualized tasks
Division of labor
Individual are allowed to own private property and make personal choices
Free market
Economic success, or the condition of enjoying many gods, including services
Prosperity
The value of all things the people own
Wealth
Human activity, which results in the creation of goods and services
Labor
