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

2. 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

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

4. Key Ideas: Labor and Capital

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

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

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

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

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

10. 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”

11. 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 )

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

13. How to Play Invest in capital – continued

14. How to Play Invest in infrastructure

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

16. WAIT !

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

18. Annual Report – Economic Shocks

19. Annual Report – Income

21. Success Rubric