Economic Systems and Industrialization

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Questions and Answers

What is the main characteristic of capitalism?

Private ownership of the means of production (correct)

State-controlled markets

Emphasis on communal wealth

Government ownership of production

In a free market, government intervention in business activities is common.

False

What economic system is designed specifically to increase a monarch's wealth?

mercantilism

One characteristic of capitalism is the _____ motive, which drives individuals to accumulate wealth.

profit Signup and view all the answers

Match the following terms with their definitions:

Mercantilism = An economic system for increasing a monarch’s wealth Capitalism = An economic system based on private ownership and profit Free Market = An economy without government interference in business Monopoly = A market controlled by a single company Signup and view all the answers

Which factor contributed to Great Britain becoming a powerhouse during the Industrial Revolution?

Encouragement of hard work and individual responsibility Signup and view all the answers

During the Industrial Revolution, children were often exempt from work unless they were wealthy.

False Signup and view all the answers

What does the term 'monopoly' refer to in the context of capitalism?

When a business has no competition in a market. Signup and view all the answers

What was a direct consequence of the invention of new farming machinery?

Healthier diets resulting in population growth Signup and view all the answers

The government implemented strict regulations on health and safety during industrialization.

False Signup and view all the answers

What was the primary economic shift that characterized industrialization?

The shift from agriculture to manufacturing. Signup and view all the answers

The __________ Act of 1819 limited the hours worked by children to a maximum of 12 per day.

Factory Signup and view all the answers

Match the following Factory Acts with their respective regulations:

Factory Act 1819 = Max 12 hours for children Factory Act 1833 = Banned children under 9 Factory Act 1844 = Max 12 hours for women Factory Act 1850 = 10.5 hours limit for women and children Signup and view all the answers

Which invention was NOT responsible for making cottage industries obsolete?

Electric loom Signup and view all the answers

The strong British Navy was used to protect fishing boats during the industrial era.

False Signup and view all the answers

What was one effect of the rising demand for goods during industrialization?

It drove manufacturing growth. Signup and view all the answers

Study Notes

Capitalism

Is an economic system based on private ownership of production and profit motive

Free Market

Is an economy with minimal government interference in business activities
Supply and demand are regulated with minor restrictions

Monopoly

Historically, it referred to the exclusive right granted by a monarch for gathering and trading a specific good.
Today, it refers to a business with no competition in its market, controlling a product or service.

Industrial Revolution

Many European countries transitioned to industrial production models
Great Britain was the first country to undergo this shift
Its transformation in the 18th century was significant, hence the term "Industrial Revolution"

Values that enabled Industrialization

Hard work was encouraged and expected
Individuals were held responsible for improving their lives through hard work
There was no employment insurance, social insurance or pensions
Government did not control competition in the economy
Government protected property rights of large landowners, who evicted farmer-tenants
Government did not regulate health or safety
Government promoted free trade
New farming machinery led to healthier diets and population growth
Population increase in cities created a large labor force willing to work for low wages and poor conditions
Rising demand for goods drove manufacturing
The invention of the steam engine led to the development of the railroad
The strong British Navy protected merchant ships supplying raw materials to British factories

Textile Industry

Textiles were once produced on hand looms by weavers at home.
Companies supplied weavers with cotton or wool in exchange for completed textiles.
This was known as cottage industry.
Inventions like the flying shuttle, spinning jenny, and power loom made cottage industries obsolete.
New machinery produced consistent quality cloth at a lower cost compared to homespun cloth.
This reduced clothing costs for ordinary people.
Weavers had no choice but to work in factories with low pay and poor working conditions.

Industrialization

Refers to a shift in a country's dominant economic activity from agriculture to manufacturing.

Working Conditions

The Factory Act of 1819 limited children's working hours to 12 per day.
The Factory Act of 1833 prohibited children under 9 from working in textiles and limited 10-13 year olds to a 48-hour work week.
The Factory Act of 1844 mandated a maximum 12-hour workday for women.
The Factory Act of 1847 established a 10-hour maximum workday for women and children.
The Factory Act of 1850 increased working hours for women and children to 10.5 hours per day but prohibited work before 6 AM or after 6 PM.
The Factory Act of 1874 restricted all workers to a maximum of 56.5 hours per week.

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Description

Explore the fundamental concepts of capitalism, free markets, and monopolies in this quiz. Delve into the historical context of the Industrial Revolution and the values that influenced industrialization. Test your knowledge on how these elements reshaped economies and societies.