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Pirate Economics Thought Questions

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Presentation on theme: "Pirate Economics Thought Questions"— Presentation transcript:

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2 Pirate Economics Thought Questions
Role of Markets SS Describe how the determinants of SUPPLY affect the price and availability of goods and services SS Describe how the determinants of DEMAND affect the price and availability of goods and services Thought Questions Why were Europeans motivated to find new trade routes to Asia? How did pirates affect the economies of Europe and their colonies?

3 What we are going to learn today
What is a Market Imports and Exports Price v. Availability Supply and Demand Profit/Loss How things effect economics, like Technology Number Sellers Government Regulations

4 Consumers = Buyers Producers = Sellers
What is a Market The world of commercial activity where goods and services are bought and sold Consumers = Buyers Producers = Sellers

5 Opening Markets in Asia
Tariffs T

6 Imports and Exports *Trading*
Exports (exit) Things that are shipped out of a place Imports (into) Things that are brought into a place Balance of Trade The amount of wealth generated from your exports compared to the amount you spend on imports What does Maui Import? What does Maui Export? How does the balance of Imports and Exports affect Hawaii?

7 Imports and Exports Europe and the Americas From Asia
Pocelain New markets in Asia & the Americas brought new goods to European markets And provided new consumers of European goods Spices

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9 Spice Trade Tariffs T

10 Fur Trade Animal pelts were big business Known as “Soft Gold”
Pelts from Beavers, Otters, seals and other cold weather animals

11 Slave Trade Tariffs T

12 Slave Trade

13 Major Cash Crops that drove the Slave trade

14 Biggest Silver reserves came from the Americas and Japan
Silver Trade Biggest Silver reserves came from the Americas and Japan

15 Mercantilism & Colonies
Countries try to make profits off of a positive balance of trade Colonies increased a counties exports Hoard precious resources like gold and silver More colonies meant more profits could be made through trade r

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17 Supply and Demand Supply Demand Indicator for Producers
$$$$$ $$$$ $$$ $$ $ ####### ##### ### # Supply How much of a good or service is produced Demand How many people want a good or service Indicator for Producers How much they should produce and how much they should sell for

18 Change in Supply Supply goes up Supply goes down
and demand stays the same producers have to sell for less price to get rid of lager supply $$$$$ $$$$ $$$ $$ $ ####### ##### ### # Supply Down Supply Up Supply goes down And demand stays the same producers can sell for higher prices because less people have the product therefore the demand would be higher

19 Change in Supply Pirates affect the Supply by stealing all the Rum
Rum gets shipped from a port in the Caribbean to Europe What happens to the price of Rum in Europe? Pirates affect the Supply by stealing all the Rum

20 Change in Supply Silver is the 1st global currency
Spanish discover huge amounts of silver in Bolivia and produced 85% of the world’s Silver What happens to the price or value of silver around the world? Silver is the 1st global currency

21 Price of Silver Over Time

22 Change in Demand Demand goes up Demand goes down
and supply stays the same producers can sell for higher prices to as people will pay more $$$$$ $$$$ $$$ $$ $ ####### ##### ### # Demand Down Demand goes down And supply stays the same producers have to sell for lower prices because are not as willing to pay high prices Demand Up

23 Change in Demand Global climate got colder Fur became fashionable
Many countries got in on the fur trade in North America What happens to the price of fur? Global climate got colder Fur became fashionable

24 Price Vs. Availability The more abundant a good or service the less it costs The harder it is to find a good or service the more it costs Example: Pineapples & Diamonds $$$$ $$$ $$ $ price Very Rare Rare Abundant Availability

25 Price Vs. Availability Pineapples Diamonds

26 Price Vs. Availability What determines availability? Specialization
Distance Limited Resources Anyone can work at McDonald's while there are only a few people that can perform surgery Goods coming all the way from Asia were expensive due to distance As goods like oil and gold get used up their price will go up

27 Profit/Loss Cost Revenue Profit Loss
How much money does it take to make a good or provide a service Revenue How much money comes from the sale of a good or service Profit When you generate more revenue than it cost to produce Loss When revenue is less than what it costs to produce a good or service

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29 create shorter shipping lanes
Technology Now Then Cheaper Energy Bigger, Faster, Safer Ships Canals create shorter shipping lanes Faster, Safer Sea Routes found by explorers

30 When there is only one seller in a market
Number Sellers Competition Drives prices down When one seller lowers prices more consumers will choose the lower price, other sellers have to lower to prices to compete Monopoly When there is only one seller in a market Why are Monopolies bad?

31 What happened to the price of Asian Spices in Europe as more countries began colonizing in Asia and importing Asian Spices?

32 Tariffs Tariffs Taxes that are charged to imports
Countries make $$$ at trade ports as people pay tax to bring in goods Prices go up as tariffs become additional Cost

33 Contraband and Smuggling
Goods that are illegal Countries would make rival country’s imports contraband to prevent them from making $$$ in their ports Smuggling Bringing in illegal goods Very profitable Prices go up as contraband goods are less available and are a high risk to import


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