Monday, December 06, 2010

Honors Business Economics: 7 December 2010

Prayer
Current Events:



Cf. http://iusbvision.wordpress.com/2010/12/05/video-how-tax-cuts-work-in-our-tax-system/

The Chapter 3 Section 1 Quiz is on Thursday.

The Chapter 2 Make-Up Test is today.

Cf. http://shanawiki.wikispaces.com/Honors+Business+Economics+Chapter+2+Test+Prep+Page+Fall+2010

The Ch. 2 Sec. 3 American Free Enterprise Make-Up Quiz is today.

New feature:

The electronic edition of the Philadelphia Inquirer is available. We have the Sunday edition, available on Mondays, in addition to the Tuesday through Friday editions on the other days.

Please follow the steps below:

URL: http://nie.philly.com
Click on the words "Access e-Inquirer" located on the gray toolbar underneath the green locker on the opening page.
Login:
Username: bshsinky@shanahan.org
Password: 10888

The electronic editions will be archived at the site for 30 days only.

Prices and Markets

Chapter 4 Demand

(Supply and) Demand

In-class assignment: in your own words, summarize and explain supply and demand. Draw an individual (each student) sample Supply and Demand Curve as it is described in the video. What is the relationship between prices and quantity demanded? What does it mean in Economics to move towards equilibrium? What is the consumer surplus? What is a producer surplus?

Supply and Demand Screen shot 1


Supply and Demand Screen shot 2, Equilibrium

Supply and Demand Screen shot 3, Consumer Surplus

Supply and Demand Screen shot 4, Producer Surplus

Why It Matters

The Big Idea

Section 1 What is Demand?

ceteris paribus ([key-te-rees pah-ri-boos] other things being equal

Guide to Reading

Section Preview

Content Vocabulary

demand

microeconomics

market economy

demand schedule

demand curve

To get a better picture of demand, economists construct graphs. They try to find out how many people are willing to buy an item at various prices, and then plot that information on a graph like this.


Deriving the Demand Curve

In-class assignment: if asked to explain to a friend who knew nothing about the demand curve, how would you explain it? Where does the demand curve come from?





The Law of Demand


Demand refers to the amount of a good or service that people are willing and able to buy at a specified price.

Mott The Hoople, 1973-4



Best Selling Christmas Items
2009Nook eReader (Barnes & Noble)
2008Elmo Live (Fisher Price)
2007iTouch (Apple)
2006Playstation 3 (Sony)
2005Xbox 360 (Microsoft)
2004RoboSapiens (WowWee)
2002-3Beyblades (Hasbro)
2001Bratz Dolls (MGA Entertainment)
2000Razor Scooters (Razor USA)

market demand curve

marginal utility

diminishing marginal utility

Diminishing Marginal Utility

In-class assignment: define diminishing marginal utility based on the video and its explanation.
What makes us happy? Is Jim happy? Is there a difference if Jim is hungry, or not? Is there a difference between cookie #1 and cookie #2, and thereafter etc.? What happens as he eats cookies? What do we discover according to this experiment? What is the Law of Diminishing Marginal Utility? Is there a point Jim should have stopped eating cookies?





Equilibrium Price







Academic Vocabulary

prevail

inversely

Reading Strategy

Products in the News

Wrist Watch

An Introduction to Demand

Main Idea

Economics and You

Demand Illustrated

The Individual Demand Schedule

The Individual Demand Curve

Reading Check

Interpreting

How do you react to a change in the price of an item? How does this illustrate the concept of demand?

The Law of Demand

Main Idea

Economics and You

Why We Call It a "Law"

The Market Demand Curve

Reading Check

Explaining

How does the market demand curve reflect the Law of Demand?

Demand and Marginal Utility

Main Idea

Economics and You

Reading Check

Describing

In-class assignment: working with a partner, and using the graphic organizer, explain how a change in price changes the quantity demanded of an item.

How does the principle of diminishing marginal utility explain the price we pay for another unit of a good or service?


Preview

Guide to Reading
Ch. 4 Sec. 2 Reading Strategy Determinants Of Demand

In-class assignment:

Working with a partner, and using the graphic organizer, explain how a change in price changes the quantity demanded of an item.

Section Preview

Content Vocabulary

change in quantity demanded
Change in Demand vs Change in Quantity Demanded, 5:13
In-class assignment

What happens to demand? Is there anything that could alter the underlying demand? What does a shift to the left indicate? What happens when apartment rent increases? Is a house a substitute? What is the difference between change in demand vs change in quantity demanded?



income effect

substitution effect

Substitution goods represent another factor influencing demand. A substitution good is one that has a similar utility as another—they both satisfy a similar need. If the cost of the substitution good changes, the demand for our original good will be affected. If the price of Twinkies falls, donut eaters may flock to the vanilla crème filled sponge cake that has been “tantalizing taste buds and filling lunch boxes since 1930.” As a result, the demand curve would shift to the left.

Income and Substitution Effects, 4:05

In-class assignment:

We want to consider Jimmy. What are Income and Substitution Effects? How do they work? How do they add up to the total price effect? What is the substitution effect? What is the income effect?




But on the other hand, if the price of Ding Dongs rises, demand for donuts as the now more affordable alternative would rise. Then our demand cure would shift to the right.

Like music?  When you buy a record, do you prefer to purchase a digital download from the internet or a physical CD or vinyl from a music shop?
In economic terms, CDs and digital music files are complementary goods.  The low price for digital downloads (free if you bootleg, a buck or so per song at legit stores like iTunes) has caused demand for more expensive physical CDs to crater.

In 2000, Americans bought 942 million CDs, spending some $13.2 billion.  Five years later, as digital music boomed, CD sales had fallen to 705 million units and $10.5 billion in sales.
The future, clearly, is in the download market.  Music on shiny silver plastic discs may soon go the way of the 8-track.


change in demand

There are some goods that have relatively static demand curves. In particular, some goods remain in constant demand regardless of changes in the price. Demand for these goods is called inelastic. (If the demand for a good is sensitive to price changes, it is called elastic.) A handful of factors influence the price elasticity of demand of a particular good: its importance, the availability of substitutes, and the percentage of our income that it costs us.
If a good is essential and we cannot do without it, demand for the good will remain constant regardless of changes in price. Medicine and milk are basic necessities; we will buy them even if the price rises. We will also continue to buy products if there is no substitute or alternative for that product. We can’t substitute water for gasoline. And if a good is cheap, we will buy it even if its price rises. We would spring for a box of matches, even if the price jumped from 79 cents to $1.25.


But even many goods with inelastic demand can acquire greater elasticity over time. If a product’s price remains high for some time, some people will learn to live without it. Gasoline demand is relatively inelastic in the short term. But when high prices persist, people develop alternative transportation strategies—they car pool, buy smaller cars, move closer to their jobs, and ride public transportation.

So let’s review the essentials. The law of demand tells us what we all know—that when prices go up demand goes down and when prices go down demand goes up. Demand measures the amount of a good or service that people are willing and able to buy at a specified price. And a demand curve plots the size of demand at various prices. Several factors influence demand: diminishing marginal utility, income, substitution goods, complementary goods, and tastes or preferences. And the more that a price change influences our willingness and ability to buy a product, the more elastic is that product’s demand.

Factors that Increase Demand, Shifting Curve to the Right:
  • Increased income
  • Increase in price of substitution goods
  • Decrease in price of complementary goods
  • Changing consumer tastes
Factors that Decrease Demand, Shifting Curve to the Left:
  • Decreased income
  • Decrease in price of substitution goods
  • Increase in price of complementary goods
  • Changing consumer tastes
Why It Matters Today
How about considering entertaining complementary goods, baseball tickets and hot dogs?

Turns out that sales in baseball tickets and Dodger Dogs don't track each other perfectly.  Since the economy went into decline a couple years back, prices for baseball tickets have held steady or even increased.  But attendances haven't fallen too dramatically.  Ballpark hot dog sales, though, have fallen off sharply.
What does that mean? It means that hot dogs have greater price elasticity than baseball tickets.  People still want to go to the ballgame, even if tickets become more expensive relative to incomes.  But they're willing to forego the extra five or ten bucks they might have spent on an overpriced hot dog once they're inside.
Ballpark concession owners from coast to coast must be crying into their $12 "souvenir cup" beers.

substitutes

complements

Complementary goods also impact demand. Complementary goods are goods that go together or are related: beer and pretzels, cameras and film, polyester bell bottoms and platform shoes, Rogaine and hair gel.
When the price of one good changes, its complementary good is affected. If film prices increase, people will buy fewer cameras. If polyester bells drop in price, demand for the four-inch platforms that best highlight the timeless lines of the disco-era bad-boys will rise.  And so on.
The demand curve for a good will shift to the left if the price of its complementary good increases. And vice versa.


One awesome example of complementary goods: baseball tickets and hot dogs.  Because what goes better with America's pastime than a delicious piece of mystery meat on a bun, with ketchup and mustard?

Top 10 Hot Dog Baseball Stadiums for 2005

StadiumHot Dogs Sold
1Dodger Stadium (Los Angeles)1,674,400
2Coors Field (Colorado)1,545,000
3Wrigley Field (Chicago)1,543,500
4Yankee Stadium (New York) 1,365,000
5Minute Maid Park (Houston)1,248,000
6Edison Field (Anaheim)1,133,000
7HHH Metrodome (Minnesota)850,000
8Citizens Bank Park (Philadelphia)800,000
9Shea Stadium (New York)745,000
10U.S. Cellular Field (Chicago)495,000

Academic Vocabulary

principle

illustrated

Reading Strategy

Companies in the News

McMakeover Deluxe

Change in the Quantity Demanded

The Income Effect

The Substitution Effect

Reading Check

Describing

How is a change in the quantity demanded illustrated on the demand curve?

Figure 4.4 Change in Demand, p. 99

In-Motion Animations

Change in Demand

Cf. http://glencoe.com/sites/common_assets/socialstudies/in_motion_08/epp/EPP_p99.swf

Figure 4.4 Change In Demand

Change in Demand

Consumer Income

The Global Economy and You

Digital Demand in South Korea

Consumer Tastes

Substitutes

Complements

Expectations

Number of Consumers

Reading Check

Explaining

How do changes in consumer income and tastes affect the demand curve?

Ch. 4 Sec. 2 Section Review Determinants Of Market Demand

HW email to gmsmith@shanahan.org or hand in hard copy.

The Chapter 2 Test Test Prep page.

Cf. http://shanawiki.wikispaces.com/Honors+Business+Economics+Chapter+2+Test+Prep+Page+Fall+2010

Santa Claus Is Laying Off His Reindeer, 1:34



Danny's [economic] Christmas song, 1:39




The Chapter 3 Section 1 Quiz is on Thursday.

Tuesday HW
1. p. 95, Review, #1

Honors World History II: 7 December 2010

Prayer

Current Events:


TSA-Style Pat Downs Hit Philly Streets

The move was also hit by a class action suit filed by the ACLU on behalf of State Representative Jewell Williams.

The Fourth Amendment

The right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, shall not be violated, and no Warrants shall issue, but upon probable cause, supported by Oath or affirmation, and particularly describing the place to be searched, and the persons or things to be seized.

TheChapter 11 Section 3 The Age of Napoleon Make-Up Quiz is today.



Cf. http://shanawiki.wikispaces.com/Honors+World+History+II+Fall+2010+Chapter+11+Section+3+The+Age+of+Napoleon+Quiz+Prep+Page

#19. should have listed: "d) Anne Louise Germaine de Staël"



#20. do not answer, skip the question entirely, go on to #21.



New feature:



The electronic edition of the Philadelphia Inquirer is available. We have the Sunday edition, available on Mondays, in addition to the Tuesday through Friday editions on the other days.



Please follow the steps below:



URL: http://nie.philly.com

Click on the words "Access e-Inquirer" located on the gray toolbar underneath the green locker on the opening page.

Login:

Username: bshsinky@shanahan.org

Password: 10888



The electronic editions will be archived at the site for 30 days only.



HW is available below at the bottom of the daily blog post.



Cf. http://vozme.com/index.php?lang=en



Cf. http://www.wordle.net/create



ABCya! Cf. http://www.abcya.com/word_clouds.htm



Or, http://www.glogster.com/login/

Who Wants to Be a Cotton Millionaire? Group #2 in 5th Period did earn money as entrepreneurs if anyone else wanted to continue trying.

Cf. http://www.bbc.co.uk/history/british/victorians/launch_gms_cotton_millionaire.shtml







ABCya! Cf. http://www.abcya.com/word_clouds.htm



vozMe: Cf. http://vozme.com/index.php?lang=en



The Spinning Mill Animation



Cf. http://www.bbc.co.uk/history/british/victorians/launch_ani_spinning_mill.shtml



Spinning mills used 'line shafting', which is the means by which the power of the steam engine is transmitted along rotating shafts (rods) to spinning or weaving mills.



This animation depicts a spinning mill like that found at Quarry Bank museum in Cheshire. It shows a furnace powering a flywheel, which is there to smooth out the otherwise jerky rotation of the crank.



In spinning mills, which could be multi-story, there are large numbers of ropes coming off the flywheel. These 'rope races' convey power to the mill's different floors.


Spinners and weavers now came each day to work in these first factories, which brought together workers and machines to produce large quantities of goods. Early observers were awed at the size and output of these establishments. One onlooker noted: “The same [amount] of labor is now performed in one of these structures which formerly occupied the industry of an entire district.”



Railroads, p. 365



Stephenson's Rocket Animation

Cf. http://www.bbc.co.uk/history/british/victorians/launch_ani_rocket.shtml



Background



The Rocket was designed and built by George Stephenson with the help of his son, Robert, and Henry Booth, for the 1829 Rainhill Trials.



The Trials were held by the Liverpool and Manchester Railway Company, to find the best locomotive engine for a railway line that was being built to serve these two English cities. On the day of the Trials, some 15,000 people came along to see the race of the locomotives.



During the race, the Rocket reached speeds of 24mph during the 20 laps of the course. This was due to several new design features. It was the first locomotive to have a multi-tube boiler - with 25 copper tubes rather than a single flue or twin flue.



The blast pipe also increased the draught to the fire by concentrating exhaust steam at the base of the chimney. This meant that the boiler generated more power (steam), so the Rocket was able to go faster than its rival, and thus secure its place in history.



The Rocket can be seen at the Science Museum, in London.
One of the most important developments of the Industrial Revolution was the creation of a countrywide railway network. The world’s first major rail line went from Liverpool to Manchester in England. Fanny Kemble, the most famous actress of the day, was one of the first passengers:



“We were introduced to the little engine which was to drag us along the rails. . . This snorting little animal, . . . started at about ten miles an hour. . . . You can’t imagine how strange it seemed to be journeying on thus, without any visible cause of progress other than the magical machine . . .”



Early Socialism, p. 370



Are Utopians Dreamers?



Infographic

Owen’s Utopia



For: Interactive Village

Visit: PHSchool.com

Web Code: nap-1941



Owen Establishes a Utopia



Checkpoint



What did early socialists believe?



Reading Check



Describing



What type of working conditions did the industrial workers face?



References and Resources



Rise of the Working Class by Jurgen Kuczynski



Making of the English Working Class by E.P. Thompson



Cultural Foundations of Industrial Civilization by John U. Nef



4th of July at OSV.







Redcoats to Rebels at OSV.

Mystic sign. Photo Source: The Next Generation



Whaling in popular culture: Mountain, "Nantucket Sleighride"







The cold hard steel of the harpoon's point

Struck deep into its side.

We played out line and backed the oars

And took the cruel sleighride.



The term "Nantucket Sleighride" was coined by the whalers to explain what happened after they harpooned a whale. (Nantucket Island was considered the whaling capital of the world during the 19th century.) The first strike of the harpoon was not intended to kill the whale but only to attach it to the whale boat. The whale would take off pulling the whale boat along at speeds of up to 23 mph (37 kmh). The whale would eventually tire itself out, the leading officer in the boat would then use a penetrating lance to kill the whale.



Nantucket Sleighride is Dedicated to Owen Coffin who was cabin boy aboard the whaler Essex, which was destroyed by a sperm whale in 1819. Owen ended up in the lifeboat with Captain Pollard, his uncle. Two other lifeboats also put out. During the next 3 - 4 months, the lifeboats separated. One was never seen again, but some of those on the remaining two boats were eventually rescued.

During those long months at sea (and on desert islands), many of the men died. The remainder eventually had to resort to cannibalism to survive. After the dead of natural causes were consumed, the men determined to draw lots to see who would sacrifice his life for the others. Owen Coffin ``won'' the lottery. The Captain tried to take Owen's place, but the youth insisted on his ``right''. The executioner was also drawn by lot. That ``winner'', another young man named Charles Ramsdell, also tried vainly to swap places with Owen. Again he refused. Owen's body kept the others alive for ten days (Captain Pollard refused to eat his nephew). Another man died, and his body kept Pollard and Ramsdell alive a few more days until they were rescued.



Lyrics

Goodbye, little Robin-Marie

Don't try following me

Don't cry, little Robin-Marie

'Cause you know I'm coming home soon

My ships' leaving on a three-year tour

The next tide will take us from shore

Windlaced, gather in sail and spray

On a search for the mighty sperm whale

Fly your willow branches

Wrap your body round my soul

Lay down your reeds and drums on my soft sheets

There are years behind us reaching

To the place where hearts are beating

And I know you're the last true love I'll ever meet

Starbuck's sharpening his harpoon

The black man's playing his tune

An old salt's sleeping his watch away

He'll be drunk again before noon

Three years sailing on bended knee

We found no whales in the sea

Don't cry, little Robin-Marie

'Cause we'll be in sight of land soon



Section 2 Reaction and Revolution.



After Waterloo, diplomats and heads of state again sat down at the Congress of Vienna. They faced the monumental task of restoring stability and order in Europe after years of war. The Congress met for 10 months, from September 1814 to June 1815. It was a brilliant gathering of European leaders. Diplomats and royalty dined and danced, attended concerts and ballets, and enjoyed parties arranged by their host, Emperor Francis I of Austria. The work fell to Prince Clemens von Metternich of Austria, Tsar Alexander I of Russia, and Lord Robert Castlereagh of Britain. Defeated France was represented by Prince Charles Maurice de Talleyrand.





Congress Strives For Peace



Congress Fails to See Traps Ahead



Reading Check



Explaining



What was the "principle of legitimacy?"



The Conservative Order



Reading Check



Summarizing



What were the views of the conservative movement?



Forces of Change



Liberalism



Nationalism



Balkan Nationalism



Learn



Focus Question



How did the desire for national independence among ethnic groups weaken and ultimately destroy the Austrian and Ottoman empires?



Why did nationalism bring new strength to some countries and weaken others?


In Eastern and Central Europe, the Austrian Hapsburgs and the Ottoman Turks ruled lands that included diverse ethnic groups. Nationalist feelings among these subject peoples contributed to tensions building across Europe.





Revolutionary Outbursts



Greek soldiers







Reading Check



Evaluating



How did liberalism and nationalism begin to break through the conservative domination of Europe?



The Revolutions of 1848
Les Miserables


Summary



The backdrop for Victor Hugo's novel Les Miserables is revolutionary France in the 1800s. Les Miserables expresses Hugo's passionate belief in the spiritual possibilities of society, despite the presence of evil. Les Miserables also expresses Hugo's fight for justice, democratic ideals, and basic rights for all people.



What was the main theme of Hugo's novel Les Miserables?



What were Hugo's political beliefs?



Writing Practice



How do the choices made by Jean Valjean reflect his sense of justice and compassion for others?



Another French Revolution



Trouble in the German States



Germany







Note Taking



Recognize Sequence: keep track of the sequence of events that led to German unification by completing a chart like the one below. Add more boxes as needed.





Taking Initial Steps Toward Unity



In the early 1800s, German-speaking people lived in a number of small and medium-sized states as well as in Prussia and the Austrian Hapsburg empire. Napoleon’s invasions unleashed new forces in these territories.

Napoleon Raids German Lands



Economic Changes Promote Unity



In the 1830s, Prussia created an economic union called the Zollverein (tsawl fur yn). It dismantled tariff barriers between many German states. Still, Germany remained politically fragmented.



In 1848, liberals meeting in the Frankfurt Assembly again demanded German political unity. They offered the throne of a united German state to Frederick William IV of Prussia. The Prussian ruler, however, rejected the notion of a throne offered by “the people.”



Checkpoint



What was the German Confederation?



Revolutions in Central Europe

The Hungarian Parliament Passes Legislation Funding an Army Against the Hapsburg Empire, 1848



The mixed symbols on the flag of the Austro-Hungarian Empire

A Multinational Empire



Equally disturbing to the old order were the urgent demands of nationalists. The Hapsburgs presided over a multinational empire. Of its 50 million people at mid-century, fewer than a quarter were German-speaking Austrians. Almost half belonged to different Slavic groups, including Czechs, Slovaks, Poles, Ukrainians, Serbs, Croats, and Slovenes. Often, rival groups shared the same region. The empire also included large numbers of Hungarians and Italians. The Hapsburgs ignored nationalist demands as long as they could. When nationalist revolts broke out in 1848, the government crushed them.





Revolts in the Italian States

Italy Before 1861







Note Taking



Reading Skill: Recognize Sequence



As you read and hear a lecture on the Italian revolt, create a time line showing the sequence of events from 1831 to 1871 that led to Italian unification (the time line continues in the next section of the Chapter).









After a failed revolution against Austrian rule in northern Italy, many rebels, fearing retribution, begged for funds to pay for safe passage to Spain. Giuseppe Mazzini (mat see nee), still a boy, described his reaction to the situation:



“He (a rebel) held out a white handkerchief, merely saying, ‘For the refugees of Italy.’ My mother . . . dropped some money into the handkerchief. . . . That day was the first in which a confused idea presented itself to my mind . . . an idea that we Italians could and therefore ought to struggle for the liberty of our country. . . .”



—Giuseppe Mazzini, Life and Writings



Learn



Focus Question



How did influential leaders help to create a unified Italy?

Garibaldi







In fact, a local municipality is named after a leading Italian patriot and nationalist: Pasquale Paoli.


Cf. http://en.wikipedia.org/wiki/Pasquale_Paoli


Reading Check



Identifying



What countries experienced revolutions in 1848?



Eyewitness to History



Revolutionary Excitement



Analyzing Primary Sources, p. 377


And, to anticipate further revolutionary developments, we will consider Karl Marx.


Cf. http://www.spartacus.schoolnet.co.uk/TUmarx.htm


Resources



Books



The Age of Revolution: 1789-1848 by Eric Hobsbawm



The Church in an Age of Revolution by Alec R. Vidler



Congress of Vienna lecture

In-class assignment: answer the following questions about the Congress.


What was the Congress meant to accomplish?

The Congress attempted to tie the Continental nations together and set up a balance of power between the competing interests of the various countries.

Who was the leading figure of the Congress?

Prince Metternich

Where was he from?

Austria

What was his view of democracy?

Democracy is dangerous and unpredictable.

Who ultimately came to power through this form of government?

Dictators rise to power.

In what country was the first major problems they had to face?

Germany

What was Germany composed of?

Several small, feudal-like states and kingdoms. The Congress formed the German Confederation.

What country was the second major problem?

France

What was the name of the alliance that was formed?

Quadruple Alliance

What countries formed the four parts of the Alliance?

G.B., Austria, Prussia, and Russia. The main purpose was to counter any ambition on the part of France.

What other important--three country alliance--was formed?

Holy Alliance: Austria, Prussia, and Russia. The main purpose was to stop revolution and support the monarchies in power.

1) Early Socialism, p. 370

2) The Conservative Order, p. 372

3) Liberalism, p. 373

4) Nationalism, p. 373-74


The Congress of Vienna, between Sept. 1814 - 9 June 1815, after that France had surrender in May 1814 (Napoleon was finally defeated at Waterloo 18 June 1815).



It was a conference with ambassadors from many European states, chaired by the Austrian statesman Klemens von Metternich. It was the five "great" nations - UK, Prussia, Austria, France and Russia that decide almost everything. Norway was transferred from Denmark to Sweden and Swedish Pomerania was ceded to Prussia.



Congress of Vienna 1815



Ambassadors:



UK = Duke of Wellington



Prussia = Prince Karl von Hardenberg



Austria = Prince Klemmens von Metternich



Russia = Tsar Alexander I



France = Charles de Talleyrand



Sweden = Count Carl Löwenhielm



In-class assignment:


Economic Systems




What types of economic systems have societies used to produce and distribute goods and services?




When Adam Smith wrote The Wealth of Nations in 1776, traditional agriculture formed the heart of nearly all world economies. In the 1800s, industry began to dominate, especially in Europe and the United States. Industrialists wanted to control their own businesses. Using Smith’s laissez-faire ideas, they pushed for free markets and an end to government interference. The resulting market economy is one of the basic economic systems in the modern world. Other systems followed. These systems can be differentiated by those who make the following key economic decisions: (1) What will be produced? (2) How will it be produced? (3) To whom will the product be distributed?






Students will be assigned to one of three groups. Each group will determine who makes the key economic decisions within the three types of economies. Create a column within your group. What can you learn about your assigned system? Answer the three questions at the bottom of the introductory paragraph listed above. In each of these economic systems who decides the answers to these three questions? Then, provide examples of nations and/or regions that have each economic system.






Market Economy




In a market economy, the key economic decisions emerge from the interaction of buyers and sellers in a market. A market allows individuals to exchange, or trade, things. The market economy is also called the free market, the free enterprise system, or capitalism. One key element of this economic system is supply and demand. Producers make, or supply, only what consumers want, or demand. Another element is self-interest where producers and consumers consider only their own personal gain when making decisions. A third element is competition. Here, producers compete for consumers’ money by lowering prices or introducing new products.




Centrally Planned Economy





In a centrally planned economy, the central government, rather than individual producers and consumers in markets, makes the key economic decisions. The centrally planned economy is also called a command economy, a socialist economy, or communism. In a typical communist country, the government sets goals for production and manages nearly all aspects of production and distribution. Everything in a command economy is produced according to a rigid plan. This discourages new ideas and new products that could stimulate economic growth. The result is often poor quality goods, serious shortages, and falling production.






Mixed Economy




A mixed economy is one that has both free enterprise and socialist characteristics. Economic equality, socialists argue, is possible only if the public—in the form of the government—controls the centers of economic power. Although socialist nations may be democracies, socialism requires a high degree of central planning to achieve economic equality. In mixed economies, government plays a significant role in making the key economic decisions. In modern times, the number of mixed economies has grown. Market systems have benefited from some government intervention, and centrally planned systems have benefited from some free enterprise.






Thinking Critically





1. (a) What legitimate role might government have in what is otherwise a market economy? (b) Why might a centrally planned economy begin encouraging some free enterprise?








Industrial Revolution Review






Terms, People, and Places






Complete each sentence by choosing the correct answer from the list of terms below. You will not use all of the terms.





*smelt
*urbanization
*Thomas Malthus
*proletariat
*enterprise
*James Watt
*Manchester
*tenement
*socialism
*utilitarianism






1. predicted that population would outpace the food supply.






2. A member of the ___________ most likely lived in a small, crowded building called a ______________________.




3. Investors in Britain were ready to risk their capital to invest in ________________________.





4. Those who advocated ______________ believed that the goal of society was to bring about the greatest happiness for the greatest number.





5. To ______________________ involves separating iron from its ore.






6. _________________ improved the efficiency and design of Newcomen’s steam engine.










One video features just the Congress of Vienna music with period pictures supplementing the sound.







The Fezzibomb occurred on Friday November 20, 2009. A bunch of Fezziwiggers (dancers from Fezziwig's Tea Emporium at the Dickens Christmas Fair) met in Embarcadero Bart in San Francisco to dance to music provided by Bangers and Mash.



The Congress of Vienna is a choreographed waltz.







Congress of Vienna dance at Gaskell's held in Oakland October 2005



Ye Gaskell Occasional Dance Society sponsors Victorian ballroom dances several times a year. There are afternoon dance lessons and refresher lessons before the dance. Formal dress.

http://www.gaskellball.com



Brassworks is a live brass band led by Frank Beau Davis. They sound much better in person than in this clip.

http://www.brassworksband.com



Scottish Rite Center in Oakland has a beautiful ballroom for this event.

http://www.scottish-rite.org







Creative sock puppet show as a dramatization of the Congress of Vienna of 1815.







THE AMAZING LEGO REANIMATION OF THE CONGRESS OF VIENNA







Twilight of the Hapsburgs: The collapse of the Austro-Hungarian Empire by Z. A. B. Zeman.




New holiday feature: keep Christ in Christmas



Ray Charles • Rudolph the Red-Nosed Reindeer, 4:06


HW: email (or hard copy) me at gmsmith@shanahan.org.





Tuesday HW

1. p. 373, Reading Check, Summarizing, What were the views of the conservative movement?

2. p. 374, Picturing History, How was Louis-Philippe involved in these events?