Vocabulary of economics and history

And diffusion is the process of spreading of inventions through imitating or copying.all firms try to implement the innovations. leading widespread imitation (that’s diffusion) of inventions. In economics technological advantage is have the invention
44. MALTHUSIAN RESTRICTION Concept thatwarns that if this growth of poppulation is not checked, it will reach a resource limit which would result in destruction of sectors population by famine, disease, or war. It negates  high birth rates add wealth to a nation, and advocates moral restraint (birth control by abstinence or late marriage) to restrict the size of families.Establish psychological assumptions: 1. Food is necessary for life2. Attraction between sexes will not disappear.And two technological assumptions:1. Food increases in an arithmetic ratio2. Population increases in a geometric ratio.
45. ENCLOSURE MOVEMENT Starts In England,proceeded rapidly from 1450 to 1640; the process complete by the end of the 19th century. In the rest of Europe(19th century).  It was a division or consolidation of communal lands in Western Europe into the delineated and individually owned farm plots of modern times. Before enclosure, farmland was under the control of individual cultivators only during the growing season;Common rights over arable land have now been largely eliminated.
46. BACKWARD AND FORWARD LINKAGES One one side forward linkage is the relationship between a firm or industry and its consumers where an increase in the output of the firm or industry is transmitted forward, yielding an increase in the number of consumer s and in the demand of outputs. In the other side backward linkage is the relationship between a firm or industry and the suppliers of its inputs, or raw materials. An increase in the output of the firm or industry is transmitted backward, yielding an increase in the demand for inputs. Ex: the increase in agriculture increase in the demand of machinery.
47. ENGEL’S LAW An economic theory stating that as income rises, the proportion of income spent on food falls. It suggests that consumers increase their expenditures for food products (in % terms) less than their increases in income. After basic food needs are met, the demand for an additional quantity of food drops off. This is only possible due to the agricultural revolution which enabled massive production.
48. LEWIS MODELor dual-sector model, explains the growth of a developing economy in terms of a labour transition between two sectors, a traditional agricultural sector(labor supply↓,marg p>0)  and a modern industrial sector(offer supply ^ productivity↓ .
49. INTENSIVE VERSUS EXTENSIVE INCREASE OF PRODUCTION Referred to farming and agriculture, intensive production is an agricultural production system characterized by a low fallow ratio and the high use of inputs such as capital, labour, or heavy use of pesticides and chemical fertilizers relative to land area, while extensive  is an agricultural production system that uses small inputs of labour, fertilizers, and capital, relative to the land area being farmed.
50. THE RENT OF THE LAND Established by economist David Ricardo is the proportion of the produce of the land that is paid to the landlord for the use of the powers of the soil. When the supply of food is greater than the demand then the question of raising rent does not arise.But if the demand for corn is greater than the supply of food grains then the inferior fertile land is put into the cultivation.and the The additional cost of Labor and capital is yielding less production than the fertile land. this depends on the growing of the population creating more grades poorer fertile land and the raising of rent. When the same labor and capital is put into fertile land it produces more than the less fertile land. As the price is sold at the same price in the market, the superior land gets surplus over the necessary cost of raising the corn on the second grade land. This surplus is the accrues to the Land Lord. Is the Rent of the landlord.the difference between the produce of a given quantity of capital and labor on the more fertile land and the least fertile land is the rent.
51.COMMERCIAL REVOLUTION: Period of European economic expansion, colonialism, and mercantilism (16th-18th) There was a shift in the center of trade from the Mediterranean Sea (the Hanseatic League, Italy) to the Atlantic Ocean (England, Holland, Spain).1. Beginning with the Crusades( rediscovered rare commodities like spices, silks) and create desire for trade,2.expanded middle ages(15th 16 th). trough the seek of new trade routes,characterised by new-found wealth, new economic theories,practices,and the desire for increased world power through their colonial empires. The Commercial Revolution is marked by an increase in general commerce, and in the growth of non-manufacturing pursuits, such as banking, insurance, and investing.The principles of mercantilism were adopted, and local trade barriers were abolished. Modern credit facilities also appeared; the promissory note and the bill of exchange were created.
A BILL OF EXCHANGE VERSUS A PROMISSORY NOTe A bill of exchange or draft is an unconditional order issued by a person or firm (the drawer) which directs the receiver (the drawee) to pay a fixed sum of money to a third party ( holder) at a future date.ex:a cheque. While a promissory note is a written promise to repay a loan or debt under specific terms usually at a stated time through a specified series of payments. A banknote under the gold standard  is a case of promissory note.
DOUBLE ENTRY ACCOUNTANCY/ BOOK-KEEPING Use on present day companies.Double entry accounting is based on the fact that every financial transaction has equal and opposite effects in at least two different accounts. Assets = Liabilities + Equity,. Luca Pacioli developed this method in the late 15th. He used the memorandum, the journal, and the general ledgeraccounts for assets , liabilities, capital, income, and expenses) . He demonstrated year-end closing entries and proposed that a trial balance be used to prove a balanced ledger.
54. PUTTING-OUT SYSTEM It is a means of subcontracting work.also known as the workshop system and the domestic system. In putting-out, It is a means of subcontracting work which is contracted by a central agent who put out materials to subcontractors who complete the work in off-site facilities, either in their own homes or in workshops with multiple,who then returned finished products for paymentscraftsmen. Widespread in 17th-century Europe It undermined urban guilds and brought the first widespread industrial employment of women and children. substituted by factories system but was until 20th century in other like china or india
55. BANKRUPTCY legally declared inability of an individual or organizations to pay their creditors. It can be a involuntary bankruptcy file by creditors or initiated by the debtor “voluntary bankruptcy”.
Bankruptcy purpose.1. give another chance of starting in life to the debtor and allows once pay most of debts and debtors to be discharged from the legal obligation to pay most debts by submitting their non-exempt assets 2. to repay creditors in an orderly way to the extent that the debtor has the means available for payment.
two common forms of bankruptcy: a reorganization bankruptcy(the business to carry on with its daily commercial activity.can survive to insolvecy while partially satisfying creditor claims) and a liquidation bankruptcy.( the assets are sold off to satisfy creditor claims.

56. GOLD STANDARD monetary system in which the standard economic unit of account is a fixed weight of gold.types:, the
gold specie standard monetary unit is associated with circulating gold coins,the
gold exchange standard typically does not involve the circulation of gold coins. Rather, it uses notes or coins made of silver or other metals, but where the authorities guarantee a fixed exchange rate with another country that is on the gold standard. This creates a de facto gold standard, in that the value of the silver coins has a fixed external value in terms of gold that is independent of the inherent silver value. Finally, the
gold bullion standardgold coins do not circulate, but in which the authorities have agreed to sell gold bullion on demand at a fixed price in exchange for circulating currency.
57. PARTNERSHIPS VERSUS COMMANDITE TYPE BUSINESSES A partnership is an arrangement where parties agree to cooperate to advance their mutual interests. Each person contributes money, property, labor or skill, and expects to share in the profits and losses of the business.generally used for financing maritime trade,A commandite business is a limited partnerships, where one or more people are general partners, and are jointly and severally responsible with all of their estates, and one or more other persons who supply a part or the whole of the capital, who are liable only to the extent of the capital they have supplied(dormant or sleeping partner).
58. LIMITED LIABILITY VERSUS JOINT STOCK COMPANY A limited liability company (LLC) is a flexible form with elements of partnership and corporate structurescharacterised by the limited liability to its owners.  Joint-stock company is a business entity which is owned by shareholders.  This allows for the unequal ownership of a business with some shareholders owning a larger proportion of a company than others.they transfer their shares to others without any effects to the continued existence of the company
. 59. LUDDISM The Luddites or machine destroyerswere 19th-century English textile artisans who violently protested against the machinery introduced during the Industrial Revolution that made it possible to replace them with less-skilled, low-wage laborers, leaving them without work. movement named after Ned Ludd,( smashed two stocking frames 30 years earlie,destroying private property and thinking of techonology as negative for individuals and communities