Industrial Revolution

Big Idea:

From Home to Factory

From Little to Big

I. Industrial Revolution Basics

- Who: America, Europe, Africa

- What: Machines starting to take the place of people in making goods, economy switching from agricultural to industrial in many nations

- When: 1700 – 1900

Economic Terms

- Economy: the production and distribution of goods and services within an economic system

- Productivity: a measure of goods and services produced over a period of time with a given set of resources

Economic Terms

- Education: knowledge acquired by learning and instruction

- Skills: ability to apply knowledge and use know-how to complete tasks and solve problems

Economic Terms

- Retraining: the process of learning a new skill or trade- Wage rates: payment for labor or services to a worker, usually on an hourly, daily, or weekly basis, or by the piece

Economic Terms

- Capitalism: an economic system based on the private ownership of the means of production and distribution (land, factories, mines, railroads) and their operation for profit, under competitive conditions

Economic Terms

- Mercantilism: an economic system developed in Europe as feudalism died out, intended to unify and increase the power and monetary wealth of a nation by strict governmental regulation of the entire economy, including the development of agriculture and manufacturing and foreign trading monopolies

Economic Terms

- Socialism: a political and economic system in which government controls resources and industries

Types of Economies

- Traditional Economy: economic system in which resources are allocated by inheritance, and which has a strong social network and is based on primitive methods and tools (hunting & gathering)

Types of Economies

- Command Economy: also called a “planned” economy, an economic system in which the state or government to one degree or another manages the economy (socialism)

Types of Economies

- Market Economy: a system in which buyers and sellers make major decisions about production and distribution, based on supply and demand (capitalism)

Types of Economies

- Mixed Economy: a combination of both Command and Market economies, some private-owned and some state-owned enterprises (combination capitalism & socialism)

Paper Cutting Questions

Assume cutting paper is the industry you have chosen. - How would you determine what you are going to make (property rights)?- How will you determine how to make it (factors of production)?- Finally, who will you make the product for (economic decision making)?

How would these differ according to the type of economy: i.e. traditional, command, market or mixed.