British Economic History Quiz 1663-1910

The increase in output per unit of labor input, often driven by technological advancements and efficiency improvements.

The proportion of total output growth that cannot be attributed to increased inputs of capital or labor, generally indicating advancements in technology or organizational efficiency.

The argument that the Industrial Revolution led to a decrease in the need for skilled workers, as machines replaced complex tasks.

The practice of acquiring new skills and knowledge, which can be acquired through formal education, on-the-job training, or simply experience.

The early steam engines were inefficient and expensive to operate. This was a major challenge for factories, but improvements were made over the 19th century.

The Industrial Revolution, specifically during the 18th century, saw a notable shift from agriculture to industry in Britain. This transition is evident in the significant proportion of (proto-) industry in the economy, reaching 33.9% by 1759. Productivity advances in agriculture led to a displacement of agricultural workers, further encouraging this shift.

During the 18th century, British workers earned higher wages compared to their counterparts in other nations. This advantage wasn't just due to a lack of labor, but rather stemmed from productivity gains in the tradable goods sector, a highly skilled and specialized workforce nurtured by education, and favorable terms of trade. British goods were sought after globally, hence their prices were higher, further boosting wages.

The industrial revolution in Britain had a key advantage: cheap access to capital and energy. This is attributed to lower interest rates, making borrowing for investments cheaper. Additionally, the cost of energy resources like iron, wood, and brick was significantly lower in Britain compared to other European countries, resulting in reduced operational costs for machinery.

While the 18th century saw advancements, significant transition to modern factory production was limited before 1840. Credit availability was patchy in this period; manufacturers relied heavily on personal and religious funds. Large-scale production involved substantial capital investments, and production scaled back during downturn, as labor could be easily reduced.

The Napoleonic Wars (1793-1815) had a significant impact on British credit conditions. The government borrowed heavily to fund the war effort, affecting the availability of credit for businesses. This meant manufacturers often relied on personal and religious funds, creating an uneven playing field for entrepreneurs.