1. Quietly Study for you test! You have 10 minutes.
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Quietly Study for you test! You have 10 minutes.

2. Capitalism
7-1.4: Analyze the beginnings of capitalism and the ways that is was affected by mercantilism, the developing market economy, international trade, and the rise of the middle class.

4. 1.4: Analyze the beginnings of capitalism
Essential vocabulary:
•Peasants: Farmers or workers who are too poor to own their own land.
•Merchants: People who buy and sell goods.
•Market economy: An economy in which prices are determined by supply and demand.
•Invest: To put money into a project, expecting that it will earn more money later.
•Joint-stock company: A company that sells stock in order to raise money. Stock gives each investor part ownership of the company.
•Middle class: People who are not rich, but not poor.
•Democratic: When the people of a country have a say in how their government is run.
•Capitalism: An economic system in which people use private property and production to make a profit (the 4 P’s of capitalism).
•Means of production: Land, businesses, and tools that are used to make money.
•Entrepreneurs: People who put money into a business so they can make more money.
1.4: Analyze the beginnings of capitalism

5. What is Capitalism?
Capitalism: system in which people, rather than governments, own property, make goods, buy and sell them freely.
Government is NOT involved in the running or ownership of the business.
Based upon private ownership of resources and production that is driven to make a profit
Capitalism grew out of mercantilism

6. Factors that led to Capitalism
Mercantilism
International Trade
Rise of the Middle Class
Developing Market Economy

7. Risk Takers Entrepreneur – a business person
Joint-stock company – a group of people who gave money to a company to see the company succeed. They get shares of Stock in return for their money. If the company succeeds they get money.
Risk Takers

8. Capitalism
Build up capital: or money…that’s more to invest in business
Growth of middle class supported business
Raw materials from colonies were cheap…mother countries produce manufactured goods
Markets sell those goods

9. Merchants and ship owners took risks and enjoyed profits from the growing international trade
These merchants and business men were the beginnings of the growing middle class in Europe
Led to growing market economy in which individuals interact in the market place to exchange goods and services

10. Middle Class Business Owners
Merchants and ship owners took risks and enjoyed the profits of growing international trade.
Merchants and ship owners formed the backbone of a growing middle class in the towns and cities.
Middle class could now contribute to the economy since they were starting their own businesses.
Middle Class Business Owners

11. System where individual buyers and sellers interact in the marketplace to exchange goods and services.
The development of mercantilism, international trade and the rise of the middle class and the developing market economy was critical to the advancement of capitalism.
Market Economy

12. Adam Smith English philosopher
Said government needed to change for capitalism to be successful
Government needed to stay out of business
Led to free enterprise: idea that private businesses could compete for profits without government involvement.

13. Main Ideas
Capitalism benefited the people as individuals, not the country
Fairer system, more competition, but fairer

15. 1.5: Compare colonization in the Americas, Africa, and Asia
Essential vocabulary:
Missionary: Someone who tries to convert people (switch them over to) a religion.
Persecuted: When a group of people is singled out for mistreatment or abuse.
Protestant: A group of Christians who have split away from the Catholic Church because of disagreements with it.
Culture: People’s unique way of life, including traditions, religion, language, and art.
1.5: Compare colonization in the Americas, Africa, and Asia