Economic Theories and Industrial Impact

The video explores economic developments during the Industrial Age, focusing on the shift from mercantilism to capitalism, influenced by Adam Smith's theories. It discusses the rise of transnational businesses, the role of limited liability and stock markets, and the impact of industrial capitalism on consumers, highlighting changes in trade, finance, and living standards.

What economic theory did Adam Smith's 'The Wealth of Nations' challenge?

• Feudalism

• Communism

• Mercantilism

• Socialism

In mercantilist theory, what was considered the measure of a nation's wealth?

• Amount of bullion

• Size of the military

• Productive capacity

• Number of colonies

What is a key characteristic of capitalism according to Adam Smith?

• Fixed wealth

• State-controlled economy

• Government monopolies

• Free trade and competition

What type of business operates across multiple nations?

• Government enterprise

• Family-owned business

• Local business

• Transnational business

Which company is an example of a transnational business founded in the 19th century?

• Amazon

• Tesla

• Microsoft

• HSBC

What is the main benefit of limited liability for investors?

• Guaranteed dividends

• Control over company decisions

• No financial responsibility for company debts

• Unlimited profits

Which innovation made stock market information more instantly available in the 19th century?

• Television

• Radio

• Telegraph

• Internet

What was a significant effect of mass production on consumer goods?

• Increased prices

• Limited availability

• Higher quality

• Lower costs and wider availability

How did industrial capitalism affect the standard of living for some people?

• Decreased leisure time

• Increased standard of living

• Reduced access to goods

• Increased working hours

What factor determined the quality of life in the industrial world?

• Age

• Social class

• Gender

• Geographical location