Economic Quiz 4 Flashcards
Which industry in Britain was the leading edge during the industrial revolution
The cotton industry
What effect do preventative checks have
They decrease the birth rate
Who was the leader of Physiocratic movement in France
Francois Quesnay
Adam Smith believed that the wealth of a nation could grow because of all except one of the following. Which is the exception?
The promotion of trade monopolies
Included: division of labour, parsimony, competitive market system
What does physiocracy mean
The rule of nature
Who developed the theory of comparative advantage
David Ricardo
Who were the Luddites
A group of craftsmen who protested by destroying machines and factories
Unemployment rate
Unemployed/ labour force x 100%
Participation rate
Labour force/ working age x 100%
Law of diminishing returns
With technology and the resource base held constant, at some time in any productive process, further equal additions of a variable resource will yield successively smaller increments of output
Average product
Ap= tp/ # workers
Marginal product
Mp= change tp/ change labour
Absolute advantage
Produce more
Competitive advantage
Lower opportunity cost of production
