The Industrial Revolution and Economic Indicators Flashcards

Flashcards covering the causes and key inventions of the Industrial Revolution in Britain, as well as the definition and components of Gross Domestic Product.

Industrial Revolution

A period of major economic, technological, and social change that began in Britain around 1750 and spread to Europe and the United States during the 18th and 19th centuries.

Agricultural Revolution

A period during the 17th and 18th centuries in Britain involving land enclosures, improved tools, and crop rotation that made farming more productive.

Land enclosures

The process where common lands were turned into privately owned farmland, a key part of the Agricultural Revolution.

The Power Loom

A machine that replaced skilled textile workers and greatly increased cloth production at a lower cost.

Coal Deposits

Britain possessed 80% of Europe's supply, providing cheap and abundant fuel for industrial machines.

Urbanisation

The movement of people from rural villages to industrial cities, which created an increased supply of labour and growth in consumer markets.

Spinning Jenny (1764)

Invented by James Hargreaves, this machine enabled a single worker to spin multiple threads simultaneously, increasing productivity in the textile industry.

Water Frame (1769)

Developed by Richard Arkwright, this invention used water-powered machinery to produce strong cotton yarn and contributed to the emergence of the factory system.

James Watt’s Steam Engine (1765-1766)

An improved version of the steam engine that increased fuel efficiency and reliability, enabling it to power factories, railways, and steamships.

Gross Domestic Product (GDP)

The total monetary value of all finished goods and services produced within a country's borders during a specific period.

GDP Formula

$$\text{GDP} = C + I + G + NX$$

Consumption (C)

Money spent by people and households on goods and services, such as food, clothes, and entertainment.

Investment (I)

Money spent by businesses to improve or grow production, such as buying machines, tools, or buildings, as well as the purchase of new homes.

Government spending (G)

Money spent by the government on services and projects, such as schools, roads, and hospitals.

Net exports (NX)

The value of a country’s exports minus its imports.

Expansion (Economic boom)

Occurs when an economy experiences several consecutive quarters of positive GDP growth.

Recession (Economic bust)

Generally considered to occur when an economy experiences two or more consecutive quarters of negative GDP growth.

GDP per capita

A measure of a country’s standard of living, also referred to as GDP per person.