Knowledge Connections Vocabulary  Entrepreneur Joint Stock Company Term Definition Knowledge Connections Picture

How was capitalism different from mercantilism? Essential Question How was capitalism different from mercantilism?

How did economics change? The Age of Exploration changed the way people did business People were now becoming aware of the LAWS OF SUPPY AND DEMAND

What were supply and demand? What can be sold? How much is there go around? SUPPLY and What do people want? What are people willing to pay? DEMAND If an item is difficult to get --- it will cost more If there is too much of an item – it will cost less

Someone willing to risk money in hopes of making a profit What is an entrepreneur? The importance of trade gave rise to a new type of individual, the ENTREPRENEUR Someone willing to risk money in hopes of making a profit

Company where different investors would put their money together What is a joint stock company? Many entrepreneurs couldn’t raise the money on their own, so they formed JOINT STOCK COMPANIES Company where different investors would put their money together If a voyage failed – they all shared in the loss If a voyage succeeded – they all share in the gain

This gave rise to a new form of economy called CAPITALISM What is capitalism? This gave rise to a new form of economy called CAPITALISM In this system, people (not the government): Own property Make goods Buy goods Sell goods For the first time, people were now responsible for their money and what they did with it!

How was capitalism different from mercantilism? Essential Question How was capitalism different from mercantilism?

MERCANTILISM CAPITALISM