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Needs
Things essential for survival, such as food and shelter; contrasted with wants.
Wants
Things that people desire; the opposite of needs.
Single Origin Theory
This theory suggests that all humans originated in Africa. They started to migrate out of Africa about a million years ago and spread to Europe and Asia.
Factors of Production
The resources—including land, labor, and capital—that are needed to produce goods and services.
Trade
The exchange of goods and services.
Import
Bringing goods and services into a country from elsewhere.
Export
Sending goods and services to another country from your own.
Economics
Is the study of how to maximize the use of resources to meet needs & wants
Bartering
Fulfilling needs and wants by exchanging needed or wanted objects and resources.
Currency
A form of money. A physical object, like a coin or token, that has no value unto itself but is used as a placeholder for a thing of value. Early forms of this included clay tokens, stamped with a seal, that could be exchanged for a fixed quantity of grain from a central repository. To trade the token in barter was akin to trading the grain itself.
paleolithic wants
could be as simple as another stone tool with a sharper edge or a shelter.
paleolithic needs
food water and shelter
Silk Road
An ancient network of trade routes that for centuries were central to trade & cultural interaction from Asia to Europe
Where did the Phoenicians settle and Trade?
where Lebanon is today, they created a city-state across the Mediterranean to trade things like, papyrus, purple dye, wine, weapons, precious metals, ivory and silk.
the 5 Components of Trade
Trading Partners
Middlemen
Modes of Transport
Currency
Trade Goods
Manor
A lord’s estate in feudal Europe.
Serf
A medieval peasant legally bound to live on a lord’s estate.
Three Field System
A system of farming developed in medieval Europe, in which farmland was divided into three fields of equal size and each of these was successively planted with a winter crop, planted with a spring crop, and left unplanted.
Lord
In feudal Europe, a person who controlled land and could therefore grant estates to vassals.
Vassel
In feudal Europe, a person who received a grant of land from a lord in exchange for a pledge of loyalty and services.
Knight
Medieval Europe, an armored warrior who fought on horseback.
Fief
An estate granted to a vassal by a lord under the feudal system in medieval Europe.
Tithe
A family’s payment of one-tenth of its income to a church.
Guild
A medieval association of people working at the same occupation, which controlled its members’ wages and prices.
Artisan
A skilled worker, such as a weaver or a potter, who makes goods by hand.
Commercial Revolution
The expansion of trade and business that transformed European economies during the 1500s and 1600s.
Demesne
The lord’s land that the serfs worked, caring for his animals & maintaining the estate.
Commerce
refers to the activity of buying & selling on a large scale
Bills of Exchange
documents that clearly indicated exchange rates between coinage systems
Letters of Credit
Official letters issued in one country & shown in another that allowed a merchant to withdraw cash or pay for items with credit without having to carry cash around
Samurai
members of Japan’s warrior class, they protected Japan’s aristocratic landowners and practiced the code of Bushido.
Joint Stock Companies
A business in which investors pool their wealth for a common purpose then share the profits.
Stock
A partial right of ownership of a corporation.
Colony
A land controlled by another nation.
Mercantilism
An economic policy under which nations sought to increase their wealth and power by obtaining large amounts of gold and silver and by selling more goods than they bought.
Triangular Trade
The transatlantic trading network along which slaves and goods were carried between Africa, England, Europe, the West Indies, and the colonies in the Americas.
Atlantic Slave Trade
The buying, transporting, and selling of Africans for work in the Americas.
Columbian Exchange
The global transfer of plants, animals, and diseases that occurred during the European colonization of the Americas.
Middle Passage
The voyage that brought captured Africans to the West Indies, and later to North and South America, to be sold as slaves—so called because it was considered the middle leg of the triangular trade.
Outward Passage
The voyage of Africans from their rural villages to the West Coast Africa to be sent to the Americas.
Loose packing
Ship captains took fewer slaves in hope to reduce sickness & death
Tight packing
Ship captains carried as many slaves as their ship could hold - many died on voyage
Homeward Passage
Africans sold at auction in Americas / West Indies, Money from sale would buy cargo of raw materials: cotton, sugar, spices, rum, chocolate or tobacco
Hudson's Bay Company (HBC)
with charter (1670) for fur-trading in North America. Controlled Rupert’s Land(1/2 of Canada) until 1869 & still exists today as a modern company with multiple interests in store retail, real estate, insurance, etc
East India Company
Laissez Faire Economics
The idea that the government should not interfere with or regulate industries and businesses.
Capitalism
An economic system based on private ownership and on the investment of money in business ventures in order to make a profit.
Industrial Revolution
The shift, beginning in England during the 1700s, from making goods by hand to making them by machine.
Factories
Large buildings in which machinery is used to manufacture goods.
Entrepreneur
A person who organizes, manages, and takes on the risks of a business.
Urbanization
The growth of cities and the migration of people into them.
Union
An association of workers, formed to bargain for better working conditions and higher wages.
Profit
a financial gain, especially the difference between the amount earned and the amount spent in buying, operating, or producing something.
What are the 3 Laws of Economics?
1. The law of self-interest — People work for their own good
2. The law of competition — Competition forces people to make better products
3. The law of supply & demand — in a free market economy, prices would rise & fall based on consumer wants & availability of products / raw materials
supply
production of goods & services
Demand
what goods & services consumers want
Cottage System
Small scale industry where goods are produced in one’s home either individually or with a few other people
Piece-work
product completed fully by 1 person, e.g. worker builds complete chair including cushion
James Watt
made the steam engine work faster & more efficient while burning less fuel
Why did the Industrial Revolution happen in Great Britain?
Water power & coal to fuel the new machines
Iron ore to construct machines, tools & buildings
Rivers for inland transportation
Ports from which merchant ships set sail
14
How many hours did the average factory worker work per day?
Ideology
A collection of beliefs, values, priorities, or ideals, especially one that underpins social, economic, or political policy.
Capitalism
an economic system based on private ownership and on the investment of money in business ventures in order to make a profit.
Utilitarianism
The theory, proposed by Jeremy Bentham in the late 1700s, that government actions are useful only if they promote the greatest good for the greatest number of people.
Socialism
An economic system in which the factors of production are owned by the public and operate for the welfare of all.
Communism
An economic system in which all means of production—land, mines, factories, railroads, and businesses—are owned by the people, private property does not exist, and all goods and services are shared equally.
Karl Marx
a German journalist who, along with Friedrich Engels, developed a radical school of socialism in a 23-page pamphlet called The Communist Manifesto in 1848.
Proletariat
In Marxist theory, the group of workers who would overthrow the car and come to rule Russia.
Josef Stalin
By 1928, he was in total control of the Communist Party, wielding that power as a ruthles dictator.
Vladimir Lenin
A revolutionary and leader of the bolsheviks. After the revolution of 1917, Russians revered him as the “Father of the Revolution.”
Five Year Plan
Plans outlined by Joseph Stalin in 1928 for the development of the Soviet Union’s economy. Often practiced economically by communist governments today such as China.
The Communist Manifesto
1848 literary work by Marx and Egels that promoted the idea of extreme socialism and predicted that a communist revolution was inevitable as the proletariat will revolt against the bourgeoisie.
Bourgeoisie
(factory owners, the wealthy) who control the land & the means of production (factories, capital & workers), have all the power & wealth & therefore control society!
What are the characteristics of Communism?
Collective (State) ownership of property & means of production (e.g. China, Cuba today - though some private property allowed)
Centrally (Government) planned economy (no capitalism - supply & demand determined by state, e.g. 5 Year Plans in Soviet Union (Russia) & China
Only 1 political party allowed (Communist Party only, all other parties outlawed, e.g. China, Cuba today)
Limited or no democracy (individual rights & freedoms not protected, no free elections)
China, north Korea, Cuba, Laos, Vietnam
What countries in the world are currently considered communist?
Why didn’t Marxism take hold everywhere?
Marx's theory ultimately did not take place worldwide as people’s standard of living increased in late 1800's. The many abuses of early Industrial Revolution disappeared and many countries adopted Liberalism — a capitalist system with elected gov’ts that gave the people more of a say (but still tended to favor the wealthy)
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