Warm Up Questions 1.Did the cotton gin increase or decrease the need for slaves? Why? 2.How did the Industrial Revolution change the role of women? What about children? 3.How did unions form during the Industrial Revolution? 4.What are three reasons why people wanted free public education at this time? 5.What is collective bargaining? 6.During the age of exploration what was the popular economic theory that advocated government control, keeping precious metals in a country, and supported the idea that colonies exist for the benefit of the mother country?

Welcome to the Country of Pantssylvania

Guidelines In order to receive an A for today’s lesson you need to earn at least FIVE Mr. P dollars. You will receive Mr. P dollars for completing various tasks and following the rules of the classroom. This includes raising your hand if you wish to speak. For the purposes of our discussion you should consider Mr. P dollars as money.

On your worksheet 1. Write down something you would like to own and what you think it costs?

2. How would you get the money to buy the thing you want to own? 3. What is the connection between money and work (labor)? Work Trade or Exchange

4.If you answer one of my questions how many Mr. P dollars do you get? What do you get when you answer two questions? 5. So if you do more work you will usually get more of what? Mr. P dollars or Money

6. If you have more money what can you do with it? Buy more stuff 7. Who owns the stuff that you buy? You do, you get to keep it

8. Think back to your answer to question one. Write down all the different parts or things that you know of that go into making the thing you wanted. Think about what it is made of, how it gets made, and who pays for it before you buy the item.

9. The three broad groups that summarize what goes into making something are 1. Capital – which is another term for money 2. Labor 3. Natural Resources

Together they are called Factors of Production 11. Write your own definition for the term in box 10.

12. In the United States today, who owns the factors of production? Is it private individuals or the government? (hint look at question 7) Private Individuals

How many of you would like to be rich? What does it take to get rich? For some people the desire for wealth motivates them to work. Under this system people work for their self-interest.

13. What is this economic theory called that includes these parts? Capitalism wealth or money and the means or ways to earn money are owned privately. Individuals own their own labor.

On the back of these sheet is a chart for the two economic theories we will be examining. We can now fill in some boxes.

Lets read a little bit about the founder of Capitalism!

Adam Smith published a book called the The Wealth of Nations in 1776 which discussed the economic ideas of capitalism.

Smith’s book also promoted Laissez-faire Laissez-faire is a policy where the government minimizes its involvement in the economy. In French, laissez-faire means “Don’t bother with it” or nonchalance.

During the 1800s many nations abandoned the tightly controlled protective trade policies of mercantilism and supported Adam Smith’s ideas. Followers of Smith also formed a free trade movement to allow goods to flow freely across national boundaries.

13. If you wanted to start your own business here in the United States could you? What business would you start? 14. What happens if someone else starts that same kind of business? You would have competition

In America today if you want to stop for fast food where would you go?

18. What are the prices like at fast food places? Low 19. Why are they low? Because the supply of options is so large

Has anyone ever been to a tourist attraction, a sporting event, or another location where there is only one or two fast food restaurants? Have you ever noticed that the prices for the fast food items are more expensive? Do you know why that is? Less supply so they can charge more.

How does this connect to the Industrial Revolution? If I want to start up a factory to produce cloth what factors of production am I going to need? Lets say all those things cost me 30 Mr. P dollars, but I only have 5 Mr. P dollars. How can I get more money?

20. What are shares of stock? Shares of stock represent ownership stakes in a company. If the company makes a profit it is split evenly among all the shares of stock. If a company goes bankrupt you don’t get your money back.

Who would like to spend some of their Mr. P Dollars on Stock in the A+ Test Company? 21.If a company is made up of share holders who owns the company? Individuals do.

22. If the factories in the Industrial Revolution were set up like a corporation, not all of them were but some were, who made most of the profit? The factory owners / share holders

Remember the stations yesterday. How are the workers being treated? How are they being paid? Was it fair? How do you think they felt with the owners making all that profit?

The unequal distribution in wealth caused by Capitalism leads to the development of a new economic theory called socialism.