How Economics & Technology Entered into the Modern World
1. Before we get into scientists & technology, the first, and
most important, aspects we will look at in this
presentation is economics, theories, & systems.
 What is economics?
1. Before we get into scientists & technology, the first, and
most important, aspects we will look at in this
presentation is economics, theories, & systems.
 What is economics? The study of production, distribution,
and consumption of goods and services.
▪
▪
▪
▪
What does “production” mean?
What does “distribution” mean?
What does “consumption” mean?
What does “market” mean?
1. Before we get into scientists & technology, the first, and
most important, aspects we will look at in this
presentation is economics, theories, & systems.
 What is economics? The study of production, distribution,
and consumption of goods and services.
▪
▪
▪
▪
What does “production” mean? Supply, producers.
What does “distribution” mean? Sell, transfer.
What does “consumption” mean? Demand, consumers.
What does “market” mean? Place where goods & services are
exchanged.
1. Before we get into scientists & technology, the first, and
most important, aspects we will look at in this
presentation is economics, theories, & systems.
 What is economics? The study of production, distribution,
and consumption of goods and services.
▪
▪
▪
▪
What does “production” mean? Supply, producers.
What does “distribution” mean? Sell, transfer.
What does “consumption” mean? Demand, consumers.
What does “market” mean? Place where goods & services are
exchanged.
▪ Markets can be local, state, regional, national, international, or
global; physical or electronic.
2. Each economy is governed by an economic
system:
 Way to organize an economy (resources, goods, &
services) to support a country’s needs.
2. Each economy is governed by an economic
system:
 Way to organize an economy (resources, goods, &
services) to support a country’s needs.
 Economic systems come in many different forms;
however, most can be defined through the degree of
GOV control in the economy.
▪ Every country’s GOV has a degree of control in the economy,
how much they regulate or involve themselves in the market.
▪ No stable or democratic country has either zero control or total
control.
 On one side of the spectrum, GOV has a limited role in
the economy.
 This is called a Market Economy (Free Market): Supply &
Demand controls all aspects of the economy. Ex.?
 On one side of the spectrum, GOV has a limited role in
the economy.
 This is called a Market Economy (Free Market): Supply &
Demand controls all aspects of the economy. Ex.?
▪ Supply/Demand are Market Forces (Invisible Hand).
▪ Free Markets are free from GOV influence.
 On one side of the spectrum, GOV has a limited role in
the economy.
 This is called a Market Economy (Free Market): Supply &
Demand controls all aspects of the economy. Ex.?
▪ Supply/Demand are Market Forces (Invisible Hand).
▪ Free Markets are free from GOV influence.
 On the other side of the spectrum, GOV has a major role
in the economy.
 This is called a Command Economy (Market): GOV
controls (commands) all aspects of the economy. Ex.?
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What are the advantages of a Command Economy?
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What are the advantages of a Command Economy? GOV
keeps prices low, wages are fair, & protects certain jobs.
What are the disadvantages of a Command Economy?
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What are the advantages of a Command Economy? GOV
keeps prices low, wages are fair, & protects certain jobs.
What are the disadvantages of a Command Economy?
People face shortages, no luxury items, long work hours.
What are the advantages of a Market Economy?
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What are the advantages of a Command Economy? GOV
keeps prices low, wages are fair, & protects certain jobs.
What are the disadvantages of a Command Economy?
People face shortages, no luxury items, long work hours.
What are the advantages of a Market Economy? People
own property & skilled workers make more money.
What are the disadvantages of a Market Economy?
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What are the advantages of a Command Economy? GOV
keeps prices low, wages are fair, & protects certain jobs.
What are the disadvantages of a Command Economy?
People face shortages, no luxury items, long work hours.
What are the advantages of a Market Economy? People
own property & skilled workers make more money.
What are the disadvantages of a Market Economy?
Unfair to people w/o skills/capital & no safety net during
recessions.
 These two types of economies soon produced three economic
systems that are still used today.
3. The 1st example of the economic systems born
during Industrialization is Capitalism. Examples?
 An economic system where individuals own the means
of production & Supply/Demand determine prices,
wages, & production.
3. The 1st example of the economic systems born
during Industrialization is Capitalism. Examples?
 An economic system where individuals own the means
of production & Supply/Demand determine prices,
wages, & production.
▪ What are “means of production”? Factories, businesses, banks,
farms, & utilities.
▪ Capitalism is based around earning capital (money/profit).
3. The 1st example of the economic systems born
during Industrialization is Capitalism. Examples?
 An economic system where individuals own the means
of production & Supply/Demand determine prices,
wages, & production.
▪ What are “means of production”? Factories, businesses, banks,
farms, & utilities.
▪ Capitalism is based around earning capital (money/profit).
▪ Capitalism allows individuals to be creative to earn capital.
▪ Capitalism favors those w/ money & provides little safety net
for those w/o it.

The next economic system is based around
another group of people, really those that have
not.
 Which Class would have been completely supportive of
Capitalism? Why?
 Which Class would have suffered most under
Capitalism? Why?
 If individuals will not improve the lives of their workers,
then who will do it?
 Capitalism is less GOV control while the next one is all
about it.
4. The 2nd example of the economic systems born
during Industrialization is Socialism. Examples?
 An economic system where the GOV owns the means of
production & redistributes wealth to ensure equality &
fairness.
4. The 2nd example of the economic systems born
during Industrialization is Socialism. Examples?
 An economic system where the GOV owns the means of
production & redistributes wealth to ensure equality &
fairness.
▪ What is “redistribution of wealth”? Dividing out the wealth
equally to those without.
▪ Socialism is based around providing welfare for society.
4. The 2nd example of the economic systems born
during Industrialization is Socialism. Examples?
 An economic system where the GOV owns the means of
production & redistributes wealth to ensure equality &
fairness.
▪ What is “redistribution of wealth”? Dividing out the wealth
equally to those without.
▪ Socialism is based around providing welfare for society.
▪ Socialism allows for more taxes on the wealthy to pay for
welfare programs.
▪ Socialism favors those who w/o enough money.
5. Socialism comes in two modern day forms.
 Reform Socialism: where politicians work w/ GOV to
reform society & create welfare services.
▪ This is very common Europe & North America.
5. Socialism comes in two modern day forms.
 Reform Socialism: where politicians work w/ GOV to
reform society & create welfare services.
▪ This is very common Europe & North America.
 Communism: where revolutionaries overthrow GOV to
create a new society w/ total GOV control.
▪ This was common Russia & is still seen in Cuba, North Korea, &
China.
5. Socialism comes in two modern day forms.
 Reform Socialism: where politicians work w/ GOV to
reform society & create welfare services.
▪ This is very common Europe & North America.
 Communism: where revolutionaries overthrow GOV to
create a new society w/ total GOV control.
▪ This was common Russia & is still seen in Cuba, North Korea, &
China.
▪ Both forms believe the Working Class is exploited by the
wealthy & want a fairer & equal society.
▪ One tries to end this via reform while the other w/ violence.
6. The 3rd example of the economic systems created
during Industrialization is a Mixed Economy. Ex.?
 An economic system where individuals own the MOP,
but GOV provides basic welfare services for society.
▪ Mixed Economies are the most common type of economy seen.
▪ The Private & Public Sector coexist w/ smaller industries
privatized & larger one nationalized (medicine, transportation,
fuel).
▪ A completely Capitalism or Socialist economy has never lasted
very long as there are major conflicts between the people &
GOV. Think back to the lessons we have learned about change
& extremes.
Your next assignment is to use your book to fill
out the significance of the figures below.
 Underneath each figure is the Pg. number
where you will find information about him/her.
 You will be working by yourself & quietly; we
will go over this organizer in 30 minutes!
 Let’s do the first one together to make sure you
understand what I am expecting!
