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

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

3. 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

4. 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

5. 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

6. 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

7. 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!

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

9. MERCANTILISM
CAPITALISM