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Lesson 4 – The Economy. Entrepreneurship 110. Reading Assignment. Read pages 69-71 of textbook Complete the graphic organizer. Complete the following chart:. Economy Defined. The “Economy” can be defined as: The use of resources to produce and distribute goods and services.
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Lesson 4 – The Economy Entrepreneurship 110
Reading Assignment • Read pages 69-71 of textbook • Complete the graphic organizer.
Economy Defined • The “Economy” can be defined as: • The use of resources to produce and distribute goods and services.
The Three “Ages” • The three “Ages” of the Economy are: • The Agricultural Age (non-specific – 1750) • The Industrial Age (1750 – 1975) • The Information Age (1975 – present)
The Agricultural Age (? – 1750) • The majority of people lived in rural areas and worked as farmers and merchants. • Customers knew who was producing goods and services that they consumed. • Hard work and physical labour were valued. • Entrepreneurs first emerged during this age.
The Industrial Age (1750 – 1975) • People began to move from rural areas to urban areas (which became cities). • Equipment and machinery was invented to mass produce goods. • The focus was on quantity, not quality.
Cont’d • Entrepreneurship was discouraged during this age. Employers wanted workers to follow routines, not have original ideas. • Working conditions were dangerous and wages were low. As a result, some of the first ever unions were formed.
The Information Age (1975 – present) Here are some startling facts: • More information was produced in the last 20 years than the previous 5,000 years • Information is doubling every 4 years • A typical weekday edition of The New York Times contains more information than a person would encounter in a lifetime in the 17th century • 80% of new jobs require sophisticated information handling skills
More Facts • Jobs that involve the Internet pay about 50% more than jobs that do not • Artificial intelligence is expected to affect 60-90% of all jobs in organizations--supplementing, relocating, or eliminating workers • In the next five years, 80% of workers will be doing jobs differently from the way they have done them over the past 50 years
Information Age • We are in it! • For the first time, information and knowledge are valued more than anything else. • Computers are so important during this age because they have changed how we share information of all kinds.
This resulted in two main effects on workers: • Fewer are needed, as they are replaced with computers/robots. • Those who remain employed work longer hours, as they can work “anywhere.”
Alvin Toffler, a Sociologist said the following about the Information Age: • “The illiterate of the 21st Century will not be those who cannot read and write, but those who cannot learn, unlearn and relearn.” What does this quote mean?
Quote Explained • What Alvin Toffler is saying in the previous quote is: • How we receive and transmit information is changing by the day. • We must be able to learn how to transmit information (operating a Discman), unlearn (leave that information behind) and relearn (operating an MP3 player/Ipod). • If you are unable to do this, or refuse to, you will be considered “illiterate.”
Interesting to Consider… • Every year Time magazine nominates a “Person of the year.” • In 2006 that person was…
With your neighbor, do an analysis of the Time magazine cover. • Specifically, what is meant by the following: • “You control the Information Age. Welcome to your world.”
Labour and Its Importance • Read the reading and complete the questions
Hand out • Labour and Importance Reading & Questions
Answer to Assignment • Labour can be defined as productive human work. Although now, it is mostly the production of a good/service in exchange for a wage/salary. • Farmers would grow their crops or raise their livestock and trade them for other goods or services using a barter system of exchange. • Specialized Labour: People became experts at doing just a few things or even one thing. Workers became more productive. This meant that workers could improve their standard of living, if they were able to gain a share of the additional wealth they helped produce.
This was a disadvantage b/c workers became “deskilled” and forced into repetitive work. They had to depend on others for the goods & services they needed but didn’t produce. • Natural Resources – bestowed by nature and comes from the land, ex. fish, trees, etc. • Capital Resources – man made, used in the production of goods. (saws, drills, pizza ovens) • Wage – amount of $ made over short-term (by the hour/week/job) • Salary – amount of $ made over long-term (usually by the year)
The Changing Workplace • The new economy is forcing workplaces to change the way they operate if they want to be successful. Factors influencing these changes include • Globalization • Competition • Applications of new technology • E-commerce • The focus on quality • The needs of employers/employees • Changing customer demands (Green products, Organic) • The current economic situation • Concerns for human rights (Not using child labour)