Vocab Word Search (pages 552 - 557):

1. Please enter the room quietly and make note of the daily objective, class work and 
homework in your agendas. Will the person responsible for retrieving 
the journals for your rows please do so.

2. Vocab Word Search (pages 552 - 557): Capitalism - Cottage Industry - Traditional Economy - Market Economy - Mercantilism - Efficient - Circulate -

3. Vocab Word Search (pages 552 - 557): An economy based on the private ownership of 
property and the use of property to compete 
for profit, or gains, in a market. Capitalism - Cottage Industry - Traditional Economy - Market Economy - Mercantilism - Efficient - Circulate -

4. Vocab Word Search (pages 552 - 557): An economy based on the private ownership of 
property and the use of property to compete 
for profit, or gains, in a market. Capitalism - The use of workers who work at 
home with their own equipment. Cottage Industry - Traditional Economy - Market Economy - Mercantilism - Efficient - Circulate -

5. Vocab Word Search (pages 552 - 557): An economy based on the private ownership of 
property and the use of property to compete 
for profit, or gains, in a market. Capitalism - The use of workers who work at 
home with their own equipment. Cottage Industry - Traditional Economy - An economy in which the exchange of 
goods is based on custom. Market Economy - Mercantilism - Efficient - Circulate -

6. Vocab Word Search (pages 552 - 557): An economy based on the private ownership of 
property and the use of property to compete 
for profit, or gains, in a market. Capitalism - The use of workers who work at 
home with their own equipment. Cottage Industry - Traditional Economy - An economy in which the exchange of 
goods is based on custom. Market Economy - An economy in which prices and the distribution of goods are based on competition in a market. Mercantilism - Efficient - Circulate -

7. Vocab Word Search (pages 552 - 557): An economy based on the private ownership of 
property and the use of property to compete 
for profit, or gains, in a market. Capitalism - The use of workers who work at 
home with their own equipment. Cottage Industry - Traditional Economy - An economy in which the exchange of 
goods is based on custom. Market Economy - An economy in which prices and the distribution of goods are based on competition in a market. Mercantilism - An economic policy that promotes building a 
nation's strength by expanding its trade. Efficient - Circulate -

8. Vocab Word Search (pages 552 - 557): An economy based on the private ownership of 
property and the use of property to compete 
for profit, or gains, in a market. Capitalism - The use of workers who work at 
home with their own equipment. Cottage Industry - Traditional Economy - An economy in which the exchange of 
goods is based on custom. Market Economy - An economy in which prices and the distribution of goods are based on competition in a market. Mercantilism - An economic policy that promotes building a 
nation's strength by expanding its trade. Efficient - getting a job done with the least possible effort. Circulate -

9. Vocab Word Search (pages 552 - 557): An economy based on the private ownership of 
property and the use of property to compete 
for profit, or gains, in a market. Capitalism - The use of workers who work at 
home with their own equipment. Cottage Industry - Traditional Economy - An economy in which the exchange of 
goods is based on custom. Market Economy - An economy in which prices and the distribution of goods are based on competition in a market. Mercantilism - An economic policy that promotes building a 
nation's strength by expanding its trade. Efficient - getting a job done with the least possible effort. to move around or to go from place to place. Circulate -

10. ` The Origins of Modern Capitalism How did capitalism and mercantilism develop? What have do you already know about capitalism and economics? What would you like to know?

11. The Price Revolution Do you know what makes a price on something go up? Do you know what makes it go down?

12. The Price Revolution * In a free market sellers compete to supply goods. Supply and demand determine the value of something. * Higher prices led to greater profits - the landowners used the profits to invest in their businesses. * The key part of capitalism is using capital (money) to make more profit. Using money to make more money.

13. The Primary Goal of Capitalism: Invest in tools 
and materials. 2 Use money 
(capital) That you sell to make the most 
amount of profit 
possible. 1 4 3 To make products.

14. Changes in Agriculture Why do you think owning land would be important for capitalism?

15. Changes in Agriculture * During the price revolution landowners wanted to make more profit. * Landownership is also a key part of capitalism - land can be bought and sold for a profit. * In capitalism people own the land, tools and seeds needed to grow crops. (Means of production). * Higher prices for crops lead to greater profits.

16. Ownership of: Land + Tools + Peasants in the old system 
before capitalism had to 
either become farm workers 
on the landowners farm or 
work somewhere else. Seeds = Larger 
Profit

17. Changes in Industry Using the vocab word efficient can you predict what merchants wanted to do to increase profits?

18. Changes in Industry * During the price revolution cloth merchants wanted to produce their goods in a more efficient way. * They hoped to make cloth more cheaply so they could earn even bigger profits. * Cloth merchants avoided towns where guilds could set rules about cloth prices and quality.

19. English invest in: Dutch invest in: Sugar 
refining Shipyards Chocolate Coal Mines Diamonds Iron works

20. A Market Economy Do you think we live in a traditional or market economy right now?

21. A Market Economy * During the price revolution Europeans were moving away from a traditional economy. * In a market economy, prices are not fixed by guilds, by the government, or by custom. * The forces of supply and demand set prices.

22. Market Economy Traditional Economy Marketplace Guilds Government Goods Prices are fixed by the guilds 
and the government. Prices for goods are created by 
supply and demand. The more 
demand and less supply the price 
goes up.

23. Mercantilism What makes a country powerful?

24. Mercantilism * The main goal of mercantilism is to bring as much wealth as possible into the country. * Mercantilists believe the main goal of trade is to make a country more powerful. * Mercantilist traded their goods for gold and silver and they spent their money on a powerful army and navy.

25. Mercantile policy states: Trade valuable goods To purchase a powerful army. For gold and silver The best way for a country to become powerful is to 
have a powerful army. And the best way for a country 
to become wealthy is to sell more valuable products than 
it buys.

26. The Impact on Mercantilism Do you remember the Columbian Exchange?

27. The Impact on Mercantilism * European nations taxed imports to keep foreign goods out. * Founding colonies in the Americas gave European countries raw materials to make products to sell for a profit. * Merchants/traders used gold and silver coins, this payment made the seller's country richer and the buyers' country poorer.

28. The Financial Impact of Mercantilism: Use gold and 
silver to buy 
goods. Buying country Selling country The buying country would receive goods BUT it would have 
to pay for them making them poorer. The selling country became richer.

29. Important things to remember: * In capitalism the goal is to make the largest profit possible. * In capitalism profits/money (capital) are reinvested to help a business grow. * Prices are set by supply and demand in a capitalist system * Mercantilists believe that money from trade could be used to pay for a powerful military which would make a nation more powerful.

30. Use textbook pages 552 - 557 to complete your worksheet:

31. demand prices a traditional economy

32. Profit an economic system based on private ownership of property and the use of property to compete for profits or gains in a market.

33. workers worked at home with their own equipment. at higher prices

34. increased population growth gold and silver from the Americas merchants landowners

35. an economic theory that promotes building a nation's economy by expanding its trade. export imports farming industry raw materials

36. Flip over your worksheet: Quick Write answer three of these questions: 1) How were peasants affected by changes in agriculture? 2) What were the advantages and disadvantages of being a cottage-industry worker? 3) How might supply of a product affect demand for that product? 4) How are prices set in a free market? 5) Why are free markets important for capitalism?

37. Capitalism (Video): 1) How are the means of production owned in a capitalist 
system? 2) What are the five parts of the means of production? 3) What is the definition of capital? 4) How is profit gained in capitalism? 5) What was the main source of wealth before the industrial 
revolution? 6) How was wealth created after the industrial revolution? 7) Who is considered to be the father of capitalism and what 
did he write?

38. Use your textbook and your notes to complete the 
following map in your journal. Create a Defining in Context (Circle) map in your journal – 
Define what Capitalism and Mercantilism are. Capitalism and Mercantilism

40. Capitalism and Mercantilism