Economic Systems Economic Systems answer 3 basic questions: What goods and services are to be produced and in what quantities? How will goods and services be produced? For whom shall the goods be produced?

Traditional Economies An economic system in which decisions are made based on customs, beliefs, and habits Barter Based on subsistence farming People often have the same occupation as their parents

Manorial System economic system that developed under feudalism in Europe Economic activities were based around a lord’s manor Manor had to be self-sufficient 3 field System

Mercantilism Economic system that developed in 1600’s in Europe countries established colonies that existed for the benefit of the mother country Countries wanted a favorable balance of trade Export more goods than you import Colonies ship raw materials to mother country Mother country sells finished goods to colonies

Capitalism Economic system in which the means of production are privately owned and operated for profit Free Markets Competition Supply and demand Private ownership

Command Economy Economic system in which the means of production are controlled by the gov’t Socialism/Communism

Which feature would most likely be included in an economic system based on traditional agriculture and self-sufficiency Banks Gold standard Barter Tariffs

The term “mercantilism” is defined as an economic system in which prices are determined by the laws of supply and demand colonies exist for the benefit of the colonial power factors of production are owned by the government the proletariat benefit at the expense of the bourgeoisie

Which statement best illustrates the concept of European mercantilism during the Age of Exploration? England encouraged free trade among its colonies. Spain reduced exports to its South American colonies Portugal sought trade benefits from its colonial possessions. France refused to give financial support to weak national industries

In Europe, joint stock companies, shareholders, entrepreneurs, and the bourgeoisie contributed to the: rise of capitalism decline of communism development of feudalism increase in power of the guilds

Change Throughout human history various events have changed the way people have lived. Political revolutions Social and religious changes New technologies Exploration of new places New Ideas/Challenges to Authority

Change _________________ Revolution _________________ Changes occur suddenly ________________are events that brings about change Turning points

Neolithic Revolution Paleolithic Era Hunter/gathers Before Impact of Change Paleolithic Era Hunter/gathers Humans lived in small groups More reliable food source increased population No longer had to move from place to place Development of permanent settlements Rise of civilizations

The Fall of Rome Before Impact of Change Rome controlled much of Europe Centralized government provided law and order Lack of centralized power Break down of law and order led people to leave cities Population decreased Frequent invasions Decrease in knowledge and learning Led to the rise of Feudalism

The Pax Mongolia Dangerous to travel and trade along the silk roads Before Impact of Change Dangerous to travel and trade along the silk roads Mongol control of Asia and parts of Europe brings political stability and relative peace Trade routes become secure Trade and travel along silk roads increase Plague spread along trade routes Chinese technologies and goods spread to Europe

The Commercial Revolution Before Impact of Change Trade increased in Europe Contributed to the decline of feudalism and Manorialism Growth of towns and cities Middle class grows Trade guilds formed to promote standards on prices and quality Banking, Joint Stock Companies, Insurance Contributed to rise of capitalism Feudalism and manorial system existed in Europe Most people made their living around agriculture Society organized around feudal manors

The Renaissance Impact of Change Before Re-birth of Greek and Roman ideas Growth of art and learning Wealthy merchants in Italian city states supported the arts Revival of Roman and Greek architecture Humanism stressed the importance of the individual Machiavelli’s The Prince- “The ends justify the means” People began questioning traditional authorities Middle Ages in Europe Decline of learning and knowledge Gothic Architecture

Reformation Before Impact of Change Catholic Church dominated Europe Religious unity Martin Luther’s 95 Theses challenged the power of the Church Establishment of new Christian religions Loss of religious unity in Europe Civil wars break out Church weakened Monarchs strengthened

The Scientific Revolution Before Impact of Change Religious teachings and tradition used to explain the natural world People began to use reason and scientific method to understand natural laws People began questioning authority Contributed to the development of the Enlightenment

Age of Exploration/ Discovery of the Americas Before Impact of change Ottoman’s captured Constantinople and controlled overland trade routes to Asia Advanced civilizations existed in the Americas Death of large numbers of Native Americans from disease & overwork Destruction of the Aztec and Incan Empires Competition among European countries for colonies & Mercantilism Use of Africans as slave labor on plantations in the Americas Columbian Exchange

The Enlightenment Before Impact of Change Absolute monarchs controlled European countries Influenced American Revolution, French Revolution, & Latin American Revolutions Democratic/Enlightenment ideas of natural rights spread across Europe examples: Locke, Montesquieu, Rousseau Limits placed on existing monarchs Nationalism increased

The introduction of banking, letters of credit, joint stock companies, and guilds contributed to the start of the Renaissance Enlightenment Agricultural Revolution Commercial Revolution

One way in which the the Scientific Revolution and the Enlightenment were similar is that they: Encouraged the spread of new ideas Strengthened traditional institutions Led to the Protestant Reformation Rejected Renaissance individualism

Which group of people ruled much of Asia during the period shown on this map? Mongol Indian Japanese European

Classical Greco-Roman ideas were revived. Wealthy patrons supported the arts and education. Humanism spread throughout western Europe. 4. Which period in European history is most closely associated with these statements? Early Middle Ages Industrial Revolution Renaissance Hellenistic Period