1. Economic Systems Turning Points

3. Economic Systems answer 3 basic questions: – What goods and services are to be produced and in what quantities? – How will goods and services be produced? – For whom shall the goods be produced?

4. An economic system in which decisions are made based on customs, beliefs, and habits – Barter – Based on subsistence farming – People often have the same occupation as their parents

5. economic system that developed under feudalism in Europe Economic activities were based around a lord’s manor Manor was self-sufficient

6. Economic system that developed in 1600’s in Europe countries established colonies that existed for the benefit of the mother country – Countries wanted a favorable balance of trade – Export more goods than you import – Colonies ship raw materials to mother country – Colonies buy finished goods from mother country

7. Economic system in which the means of production are privately owned and operated for profit Competition Supply and demand Private ownership

8. Throughout human history various events have changed the way people have lived. – Political revolutions – Social and religious changes – New technologies – Exploration of new places

9. _________________ – Changes occur suddenly __________________ – The gradual change or development of something ________________are events that brings about change Revolution Evolution Turning points

10. Before Paleolithic Era Hunter/gathers Humans lived in small groups Impact of Change More reliable food source increased population No longer had to move from place to place Development of permanent settlements Rise of civilizations

11. Before Rome controlled much of Europe Centralized government provided law and order Impact of Change Lack of centralized power Break down of law and order led people to leave cities Population decreased Frequent invasions Decrease in knowledge and learning Led to the rise of Feudalism

12. Before Dangerous to travel and trade along the silk roads Impact of Change Mongol control of Asia and parts of Europe brings political stability and relative peace Trade routes become secure Trade and travel along silk roads increase Plague spread along trade routes Chinese technologies and goods spread to Europe

13. Before Feudalism and manorial system existed in Europe Most people made their living around agriculture Society organized around feudal manors Impact of Change Contributed to the decline of feudalism and Manorialism Growth of towns and cities Middle class grows Trade guilds formed to promote standards on prices and quality Contributed to rise of capitalism

14. Before Religious teachings and tradition used to explain the natural world Impact of Change People began to use reason and scientific method to understand natural laws People began questioning authority Contributed to the development of the Enlightenment

15. Before Catholic Church dominated Europe Religious unity Impact of Change Establishment of new religions Loss of religious unity in Europe Civil wars break out Church weakened Monarchs strengthened Witch hunts and anti- Semitism

16. Before Advanced civilizations existed in the Americas Impact of change Death of large numbers of Native Americans from disease Destruction of the Aztec and Incan Empires Competition among European countries for colonies Use of Africans as slave labor on plantations in the Americas Columbian Exchange

17. Before Absolute monarchs controlled European countries Impact of Change Revolution in France and America Democratic/Enlightenment ideas of natural rights spread across Europe – examples: Locke, Montesquieu, Rousseau Limits placed on existing monarchs Nationalism increased

18. Before Church was authority on most matters Medieval Europe Decline of learning and knowledge Impact of Change Re-birth of Greek and Roman ideas Growth of art and learning Wealthy merchants in Italian city states supported the arts Revival of Roman and Greek architecture Humanism stressed the importance of the individual People began questioning traditional authorities