We have that big history final coming up soon. We should start reviewing. I'll ask first, what is capitalism?
One aspect of the European economic revolution was the rise of capitalism. Capitalism is an economic system based on private ownership and the investment of resources.
Good job! Now, what were two different types of capitalism?
Two types of capitalism that emerged were joint-stock companies and mercantilism. Join-stock companies were when multiple people combined their wealth for a common goal. Mercantilism emphasized that nation can become richer in two ways. It could obtain as much silver and gold as it can or it could establish a favorable balance of trade, in which it sold more goods than it bought.
Nice job! Let's see, what type of capitalism emerged during the Industrial Revolution?
During the Industrial Revolution, a new type of capitalism emerged called laissez faire. It refers to the policy of letting owners of industry and business set working conditions whiteout interference.
Good work! Alright lastly, what are the three natural laws of economics and who made them?
Adam Smith, a professor from the University of Glasgow, defended the idea of a free economy in his book, The Wealth of Nations. According to Smith, economic progress guaranteed economic progress. His arguments rested on what he called the three natural laws of economics: the law of self-interest, the law of competition, and the law of supply and demand.