Standard 3a.3 The Origins of Modern Capitalism ELL High School World History

Module Test Tuesday, November 26 Standard: Production, distribution and consumption Analyze political and economic change in the 16 th, 17 th, and 18 th centuries. (The Age of Exploration, the Enlightenment, the Age of Reason) 3a.1Trace the great voyages of discovery. 3a.2Discuss the global exchanges of plants, animals, culture, ideas 3a.3Origins of modern capitalism

Key Vocabulary Terms Capitalism The profit function Costs Income Profit Supply Demand Shortage Surplus Equilibrium point Capital investment Labor investment Economic shock infrastructure

Key Ideas: Labor and Capital

The Profit Function Problem: How to escape poverty ? Profit (π) = Income - Costs

Concept Check Which word means “work that people do to produce something”? Labor Capital

Concept Check Which is the profit function? Profit (π) = Income - Costs Profit (π) = Costs - Income

Strategies to Raise Profit (short term) Profit (π) = Income - Costs Raise income Lower costs

Concept Check Which word means “equipment or machines that people use to produce something”? Labor Capital

How to Play Buy and plant crops – food plants that you can grow Hint: Use your dictionary to look up words. It will help you plan! “Versatile, resilient”

How to Play Buy livestock– animals that you can raise Hint: You might need to invest in special equipment. Check the “Needs” for each animal. (a barn, a well )

How to Play Invest in capital – equipment that makes your labor more efficient Hint: A plow “greatly increases crop yield.”

How to Play Invest in capital – continued

How to Play Invest in infrastructure

How to Play Budget – You start with $50 – about 1700 Baht You can sell your livestock or capital to raise money

WAIT !

Invest in Your Labor Force ! Check the health of your family members. Buy medicine or send your children to school

Annual Report – Economic Shocks

Annual Report – Income

Success Rubric