Economic SystemsTurning Points

• 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?

• 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

• economic system that developed under feudalism in Europe

• Economic activities were based around a lord’s manor

• Manor was self-sufficient

• 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

• Economic system in which the means of production are privately owned and operated for profit

• Competition • Supply and demand • Private ownership

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

• _________________– Changes occur suddenly

• __________________– The gradual change or development of

something

• ________________are events that brings about change

Revolution

EvolutionTurning points

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

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

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

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

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

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

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

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

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