Industrial Revolution and Economic Theories

Chapter 3 of the textbook explores the principle of individualism through the Industrial Revolution, focusing on economic perspectives like Adam Smith's laissez-faire capitalism. It discusses the growth and inequality during this period, critiques by figures like Charles Dickens, and rebuttals by David Ricardo. The chapter also covers classic liberalism's shift from collectivism, philosophical views from Locke, Hobbes, and Montesquieu, and the significance of the Industrial Revolution in England. It highlights the impact of the French and American Revolutions on individualism and the rise of capitalism and its social implications.

What is one of the key concepts introduced in Chapter 3 regarding economic systems?

• Feudalism

• Laissez-faire capitalism

• Communism

• Socialism

According to Charles Dickens, what was a significant issue during the Industrial Revolution?

• Lack of technological innovation

• Scarcity of natural resources

• Exploitation of child labor

• Excessive government control

David Ricardo's 'iron law of wages' suggests that the value of labor is determined by what?

• Government regulations

• Supply and demand

• Worker's education level

• Company profits

Which philosopher is known for advocating the preservation of freedom and property as reasons for entering society?

• Thomas Hobbes

• John Locke

• Frederick Hayek

• Montesquieu

What is the primary idea associated with John Stuart Mill introduced in this chapter?

• The iron law of wages

• The harm principle

• The social contract

• The invisible hand

Why was England a suitable environment for the Industrial Revolution?

• It had a large population

• It had abundant natural resources and a strong navy

• It had a democratic government

• It was isolated from other countries

Which revolution is associated with the slogan 'Liberty, Equality, Fraternity'?

• The Russian Revolution

• The Industrial Revolution

• The French Revolution

• The American Revolution

What was a significant social change brought about by the Industrial Revolution?

• Decline in technological advancements

• Emergence of the nouveau riche

• Increase in family size

• Decrease in urbanization

What term describes the new wealthy class that emerged during the Industrial Revolution?

• Bourgeoisie

• Proletariat

• Nouveau riche

• Old money

What was one of the negative consequences of the Industrial Revolution mentioned in the chapter?

• Decrease in agricultural production

• Widening gap between rich and poor

• Reduction in global trade

• Decline in technological innovation