1. How much would you pay for a Tulip? Goods allegedly exchanged for a single bulb of the Viceroy in 1637: Two lasts of wheat448ƒ Four lasts of rye558ƒ Four fat oxen480ƒ Eight fat swine240ƒ Twelve fat sheep120ƒ Two hogsheads of wine70ƒ Four tuns of beer32ƒ Two tons of butter192ƒ 1,000 lb. of cheese120ƒ A complete bed100ƒ A suit of clothes80ƒ A silver drinking cup60ƒ Total2500ƒ

2. The Mosaic Virus Mosaic Virus caused ‘Broken Tulip coloration’ Rarity created demand Demand could not be met Rare tulips take time to grow and are fragile Valued tulips now extinct Normal Tulip vs. Tulip with Mosaic Virus

3. Definition 1 = The buying and selling of stuff Definition 2 = The study of the production, distribution and consumption of goods and services Linked to: Supply & Demand WHAT IS ECONOMICS ?= Study of Commerce

4. SUPPLY & DEMAND

5. Return on investment of 25% More than 5x what a bank would give you! STOCKS = SHARED RISK ExpeditionShare/Inv.ResultReturn Japan$100Boat sunk$0 Malacca$100Success+$225 China$100Rats+$50 India$100Success+$175 China$100Success+$150 Java$100Success+$150 Total:+$750

6. Stocks are claims on a corporations property and profits Stock Exchange - Allows individuals to buy shares or stock in a company (video)(video) “Shared ownership” Bull Market (prices go up) Bear Market (prices go down) STOCKS

7. MONOPOLY When one person or enterprise is the only source of a good or service Dutch had a monopoly on spices from Asia

8. TULIP BUBBLE aka TULIP MANIA Definition: when asset prices deviate from intrinsic value (prices are out of whack) Inflated expectations = inflated prices A trigger collapses the artificial prices (Bubble Bursts) = economic destruction

10. What is ‘Black Friday’ ???