1. Industrial Revolution and Big Business

2. Learning Objective MWH.912.7c. Distinguish between a result that is positive/negative (good or bad for the individual or group). (09-12) Was the Industrial Revolution a positive or negative historical event? Why? (Give examples to support your point)

3. Industrial Revolution and Economic Systems I.R. caused a shift away from a Traditional Economic system to other new economic systems. Capitalism – Market, Free Market, Socialism – Mixed Market Communism – Command economy

4. Capitalism / Market A new economic system. Adam Smith (laissez- faire)(free enterprise) Little government involvement Individuals own the means of production (factory, land, machines, product) Competition between businesses. Massive profits, massive wealth Increased demand for natural resources

5. Economic Systems Capitalism (Market) Socialism (Mixed) Communism (Command) Government Involvement LittleSomeTotal OwnershipPeopleGov / PeopleGovernment ProfitHighMixedGov Controlled CompetitionGreat (Good!!!) Mixed/SomeVery Little Individual WealthUnlimitedMixedGov Controlled Tax RatesModerate / LowHighVery High Diversity of GoodsHighMixedLittle / Gov Controlled ProductionHighMixedVery Little

6. Economic Systems Capitalism (Market) Socialism (Mixed) Communism (Command) Government Involvement Ownership Profit Competition Individual Wealth Tax Rates Diversity of Goods Production

7. How did the Industrial Revolution affect business? Mass Production – division of labor, interchangeable parts, assembly line. Corporations – individuals buy shares of stocks. Business Cycles – patterns of prosperity an decline (recession / depression)

8. Learning Assessment Economic Systems Questions 1.Name the three basic economic systems today. (3pts) 2.Why is competition good between businesses? (2pts) 3.Why would capitalism create large profits? (1pt) 4.Analyze some of the negative aspects of capitalism? (2pts) 5.Appraise the impact that capitalism has had on the United States? (2pts) 6.How would a country move from one type of economic system to another? (2pts) 7.Why does the economic system that you live in matter? (3pts)

9. Mass Production Mass Production – system of manufacturing large number of identical items / products. Division of Labor – dividing the manufacturing process into a series of steps and assigning a worker to complete each step. Interchangeable Parts – identical parts made for speedy production and easy repair. Assembly Line – product is moved to workers that assemble the product, using a conveyor belt. Requires less – time, expense, skill, knowledge to produce a product.

10. Mass Production 1.Is “Mass Production” still used today? Give examples. 2.How has mass production changed over the years? 3.Formulate or theorize how mass production will change in the future.

11. Corporations Corporations – a business in which individuals buy/own shares (stocks)/parts of a business. A shareholder’s financial responsibility is limited. Monopoly – complete control of production, sale, or service by a single company/business

12. Business Cycles Business Cycles – alternating periods of economic prosperity and decline As industrial production grew it began to influence a countries entire economy. Recession – a decline in economic prosperity Depression – a collapse of a countries economy. Lowest point of a business cycle. Law of Supply and Demand

13. Theory explaining the interaction between the supply of a resource and the demand for that resource and how it influences cost. Focuses on the effect of availability (supply) of a particular product and the desire (demand) for that product and the impact it has on price (cost).

14. Law of Supply and Demand SUPPLYDEMANDCOST / PRICE HighLow High Stable

16. Law of Supply and Demand SUPPLYDEMANDCOST / PRICE

17. Business Cycles Questions 1.What are some things that influence a business cycle? (give several examples) 2.What is the current state of our countries business cycle? What could change it? 3.What impact does increasing and lowering taxes have on a business cycle? 4.What is the correlation between a countries business cycle and peoples’ economic possibilities/prosperity?

18. Impact of Big Business Made industrialized countries rich and powerful. (Capitalism) Created “Third World” countries. Industrialized countries looked to take over or control weaker non-industrialized countries. Resentment, hate, and war were the byproducts of the Industrial Revolution and Big Business. (Haves and Have Not) Environmental issues (Global Warming)