¿Por qué había una recesión en España después de la conquista de los Américas?
Los españoles encontraban mucho oro y plata y cuando regresaban a España, usaban el oro y la plata como dinero para pagar por cosas europeas. Con la entrada de mucho dinero en el mercado español, el precio de oro y plata se bajaron y el gobierno de España no sabía cómo usar su dinero nuevo en una manera lógico. También había un flujo del oro y la plata fuera del país que causó una recesión en el mercado internacional con los precios bajos de oro y plata.
What happens to the price and quantity demanded if there is a drought one year right before a corn harvest, and most of the corn dies? What can the government do to make the price of corn go back to its original amount? Does this benefit the people or the farmers?
If there is a drought, then the supply decreases, leading to an in crease in price and a decrease in quantity demanded. In order to keep the price at its original level, the government can impose a price ceiling on corn at the original price of corn before the drought. This somewhat benefits the people because corn is back at its original price and quantity demanded increases, but it also creates a shortage of corn. Also, this does not benefit the farmers at all because in the first place they lost corn to the drought and with a government-imposed price ceiling, they have to sell the corn for less than they can afford to sell it.
Why is Europe historically known for being a region marked by competition among smaller states instead of by large bureaucratic land-based empires?
Geography plays a very large role in the development of the feudal estates throughout Europe. High mountains, narrow valleys, and a complex coastline with many peninsulas and inlets hindered the expansion of large empires as traveling across land was very difficult. This made communication over large expanses of land arduous, so holding power over certain areas was almost impossible. Furthermore, because there was no great abundance of any one resource that could produce fine goods, the people of Europe looked elsewhere for more developed and finer goods in places such as India and China, developing commercial and larger cities along the coast instead of inland.