Please enter the room quietly and make note of the daily objective, class work and homework in your agendas.

Will the person responsible for retrieving the journals for your rows please do so.

Vocab Word Search (pages 552 - 557): Capitalism -

Cottage Industry -

Traditional Economy -

Market Economy -

Mercantilism -

Efficient -

Circulate -

Vocab Word Search (pages 552 - 557): Capitalism -

Cottage Industry -

Traditional Economy -

Market Economy -

Mercantilism -

An economy based on the private ownership of property and the use of property to compete for profit, or gains, in a market.

Efficient -

Circulate -

Vocab Word Search (pages 552 - 557): Capitalism -

Cottage Industry -

Traditional Economy -

Market Economy -

Mercantilism -

An economy based on the private ownership of property and the use of property to compete for profit, or gains, in a market.

The use of workers who work at home with their own equipment.

Efficient -

Circulate -

Vocab Word Search (pages 552 - 557): Capitalism -

Cottage Industry -

Traditional Economy -

Market Economy -

Mercantilism -

An economy based on the private ownership of property and the use of property to compete for profit, or gains, in a market.

The use of workers who work at home with their own equipment.

An economy in which the exchange of goods is based on custom.

Efficient -

Circulate -

Vocab Word Search (pages 552 - 557): Capitalism -

Cottage Industry -

Traditional Economy -

Market Economy -

Mercantilism -

An economy based on the private ownership of property and the use of property to compete for profit, or gains, in a market.

The use of workers who work at home with their own equipment.

An economy in which the exchange of goods is based on custom.

An economy in which prices and the distribution of goods are based on competition in a market.

Efficient -

Circulate -

Vocab Word Search (pages 552 - 557): Capitalism -

Cottage Industry -

Traditional Economy -

Market Economy -

Mercantilism -

An economy based on the private ownership of property and the use of property to compete for profit, or gains, in a market.

The use of workers who work at home with their own equipment.

An economy in which the exchange of goods is based on custom.

An economy in which prices and the distribution of goods are based on competition in a market.

An economic policy that promotes building a nation's strength by expanding its trade.

Efficient -

Circulate -

Vocab Word Search (pages 552 - 557): Capitalism -

Cottage Industry -

Traditional Economy -

Market Economy -

Mercantilism -

An economy based on the private ownership of property and the use of property to compete for profit, or gains, in a market.

The use of workers who work at home with their own equipment.

An economy in which the exchange of goods is based on custom.

An economy in which prices and the distribution of goods are based on competition in a market.

An economic policy that promotes building a nation's strength by expanding its trade.

Efficient - getting a job done with the least possible effort.

Circulate -

Vocab Word Search (pages 552 - 557): Capitalism -

Cottage Industry -

Traditional Economy -

Market Economy -

Mercantilism -

An economy based on the private ownership of property and the use of property to compete for profit, or gains, in a market.

The use of workers who work at home with their own equipment.

An economy in which the exchange of goods is based on custom.

An economy in which prices and the distribution of goods are based on competition in a market.

An economic policy that promotes building a nation's strength by expanding its trade.

Efficient - getting a job done with the least possible effort.

to move around or to go from place to place.Circulate -

The Origins of Modern Capitalism

How did capitalism and mercantilism develop?

`

What have do you already know about capitalism and economics? What would you like to know?

The Price Revolution

Do you know what makes a price on something go up? Do you know what makes it go down?

The Price Revolution

* In a free market sellers compete to supply goods. Supply and demand determine the value of something.

* Higher prices led to greater profits - the landowners used the profits to invest in their businesses.

* The key part of capitalism is using capital (money) to make more profit.

Using money to make more money.

The Primary Goal of Capitalism:

Use money (capital)

Invest in tools and materials.

To make products.

That you sell to make the most amount of profit possible. 1

2

34

Changes in Agriculture

Why do you think owning land would be important for capitalism?

Changes in Agriculture

* Landownership is also a key part of capitalism - land can be bought and sold for a profit.

* In capitalism people own the land, tools and seeds needed to grow crops. (Means of production).

* Higher prices for crops lead to greater profits.

* During the price revolution landowners wanted to make more profit.

Land

Tools

Seeds

=

+

+

Larger Profit

Ownership of:

Peasants in the old system before capitalism had to either become farm workers on the landowners farm or work somewhere else.

Changes in Industry

Using the vocab word efficient can you predict what merchants wanted to do to increase profits?

Changes in Industry

* During the price revolution cloth merchants wanted to produce their goods in a more efficient way.

* They hoped to make cloth more cheaply so they could earn even bigger profits.

* Cloth merchants avoided towns where guilds could set rules about cloth prices and quality.

English invest in:

Shipyards

Coal Mines

Iron works

Dutch invest in:

Sugar refining

Chocolate

Diamonds

A Market Economy

Do you think we live in a traditional or market economy right now?

A Market Economy

* During the price revolution Europeans were moving away from a traditional economy.

* In a market economy, prices are not fixed by guilds, by the government, or by custom.

* The forces of supply and demand set prices.

Market Economy

Prices for goods are created by supply and demand. The more demand and less supply the price goes up.

Traditional Economy

Marketplace

Goods

Guilds

Government

Prices are fixed by the guilds and the government.

Mercantilism

What makes a country powerful?

Mercantilism

* The main goal of mercantilism is to bring as much wealth as possible into the country.

* Mercantilists believe the main goal of trade is to make a country more powerful.

* Mercantilist traded their goods for gold and silver and they spent their money on a powerful army and navy.

Trade valuable goods

For gold and silver

To purchase a powerful army.Mercantile policy states:

The best way for a country to become powerful is to have a powerful army. And the best way for a country to become wealthy is to sell more valuable products than it buys.

The Impact on Mercantilism

Do you remember the Columbian Exchange?

The Impact on Mercantilism

* European nations taxed imports to keep foreign goods out.

* Founding colonies in the Americas gave European countries raw materials to make products to sell for a profit.

* Merchants/traders used gold and silver coins, this payment made the seller's country richer and the buyers' country poorer.

The Financial Impact of Mercantilism:

The buying country would receive goods BUT it would have to pay for them making them poorer. The selling country became richer.

Buying countryUse gold and silver to buy goods.

Selling country

Important things to remember:

* In capitalism the goal is to make the largest profit possible.* In capitalism profits/money (capital) are reinvested to help a business grow.* Prices are set by supply and demand in a capitalist system* Mercantilists believe that money from trade could be used to pay for a powerful military which would make a nation more powerful.

Use textbook pages 552 - 557 to complete your worksheet:

demand

prices

a traditional economy

Profit

an economic system based on private ownership of property and the use of property to compete for profits or gains in a market.

workers worked at home with their own equipment.

at higher prices

increased

population growth

gold and silver from the Americas

landowners merchants

an economic theory that promotes building a nation's economy by expanding its trade.

export

imports

industry farming

raw materials

Flip over your worksheet:

Quick Write answer three of these questions:

1) How were peasants affected by changes in agriculture?

2) What were the advantages and disadvantages of being a cottage-industry worker?

3) How might supply of a product affect demand for that product?

4) How are prices set in a free market?

5) Why are free markets important for capitalism?

1) How are the means of production owned in a capitalist system?

2) What are the five parts of the means of production?

3) What is the definition of capital?

4) How is profit gained in capitalism?

5) What was the main source of wealth before the industrial revolution?

6) How was wealth created after the industrial revolution?

7) Who is considered to be the father of capitalism and what did he write?

Capitalism (Video):

Use your textbook and your notes to complete the following map in your journal.

Create a Defining in Context (Circle) map in your journal – Define what Capitalism and Mercantilism are.

Capitalismand

Mercantilism

Capitalismand

Mercantilism