American Heritage Exam #2

travails of washington

problems with congress

competing generals

temporary enlistment

short and uncertain supply chain

proclamation of 1763

british changed their attitude twoards the colonies and became more involved in many more administrative schemes—wanted to bring money over from the colonies

stamp act

set a new standard—tax was only to raise revenue to pay back the loan from the french and indian war

affected people like lawyers, newpaper editors, publishers, and tavern owners

reactions to the stamp act

sons of liberty (group terrorizing the stamp agents)

stamp act congress (intercolonial cooperation

repeal and declaratory act 1766 (parliament has the right to legislate in the colonies in “all cases whatsoever”)

new taxes (raised taxes on lead, paint, paper, and tea)

tea act and tea party (gave monopoly on all the tea)

intolerable acts (1774)

closed the port of boston—nothing came in or out so they were losng property hand over fist

reduced powers of self-government

quartering of troops

shays rebellion

poor farmers rebelled because taxes were raised

need for a strong federal government and a new constitution

mt. vernon conference

maryland and virginia meet together to talk about the potomac river trade—wanted to make it easier to navigate the river

failure at annapolis

maryland calls for all states to come together—wanted to make trade easier but only a few states showed up

convention to revise the articles of confederation

assembly of demigods

hamilton’s plan

unlimited tenure for executive and senate

absolute executive veto

state governors appointed by the central government

lower house elected by people and upper house elected by eletors

madison’s plan (virginia plan)

new constitution—move from a confederation to a republic

create a national executive and judiciary branch

two houses in congress

representation by populationnew

new jersey plan

amend articles—fill in the gaps

retain one-house congress and equal vote for each state

great compromise—roger sherman

equality in the senate (2 per state)—appointed by state legislatures (serve for 6 years)

population based house of representatives—popular vote (serve for 2 years)

constitutional slavery

3/5 of a person for representation and taxation

fugitive slaves must returned

importation of slaves could not prohibited until 1808

separation of powers

1. legislative branch (makes laws)

2. executive branch (enforces laws)

   1. judicial branch (interprets laws)—lifetime appointments with good behavior

bill of rights

1. speech, religion, assembly, press, petition

2. bear arms

3. no quartering of soldiers

4. unreasonable search or seizure

5. grand jury, due process, eminent domain, no double jeopardy, remain silent

6. public and speedy trial

7. grand jury in civil cases over $20

8. no cruel or unusual punishment

9. cannot list all the rights that people have

10. if the rights is not explicitly given to the national government, it is reserved for the states

the great oughts

freedom of conscience

1. freedom of expressoin

   1. right to privacy

the republican (jeffersonian) vision

promotes agrarian values, encourages participation of most virtuous

natural aristocracy

strong states nad milited national power

strict construction

the federalist vision (hamiltonian)

expansion of national power

promotes commerical values and integrated society

broad construction

aristocratic leadership

liberal persuasion

trust in human nature

quick to embrace ideas and ideologies

root out corruption and reform institutions

conservative persuasion

doubt virtue and appreciate the power of self-interest

mistrust new ideas and ideologies

respect institutions and go slow on reform

goals for economy

efficiency: full employment of resources

equity: goods and services distributes fairly

freedom: private property, making trades and exchanges

scarcity

creates conflict

prices ration scarce goods and valuable resources

the economic players

governments—promotes efficciency, equity, and freedom

business firms—maximize profits

households—maximize happiness

compettive free exchange

no party controls terms of exchange

good information with no deception

both parties are better off

externalities

cost or benefit to a third party not involved in the exchangee

externalities intervention

define property rights

tax or subsidize

public goods

good or service that, if consumed by one individual, does not diminish the amount available to others

public goods intervention

government provides

instability and recession

economy operates at dramatically less than full employment of resources

recession intervention

fiscal policy: involves president and congress

• increase government spending and decrease taxes

monestary policy: federal reserve

• increase money supply and decrease interest rates to encourage investment in the economy

monopoly

one seller controls the market

monopoly intervention

regulate powerful firms

foster competition

who presented the virginia plan?

edmund randolph

who presented the new jersey plan?

william patterson

who presented the great compromise?

roger sherman

law of comparative advantage

maximize resources and minimize opportunity cost

implications of the law of comparative advantage

1. full employment of resources

2. widest gains from exchange

   1. economic interdependency

role of government in market economy

1. prevent coercion and fraud

2. provide money

3. provide transportation and communication

4. define property rights

5. enforce exchange agreements