Economics in World History
FAU Center for Economic Education
Focus: Middle School World History
 23 lessons
 Beginning of time to Adam Smith
 Most lessons have an activity / reading; dividable
 Connections
Economic Concepts
 Scarcity
 Resources (Natural, Human, Capital)
 Production
 Economic Systems
 What is produced, How is it produced, For whom?
 Market / Command / Traditional
 Trade
 Money & Banking
Tonight
 Scarcity (4:45 p.m. to 5:15 p.m.)
 Lesson 1: Out of Africa
 Economic Systems (5:15 p.m. to 6:15 p.m.)
 Lesson 6: India and the Caste System
 Lesson 8: Athens and Sparta: Imagine the Possibilities
 Money (6:45 p.m. to 7:30 p.m.)
 Lesson 13: Paper Money of the Sung,Yuan, and Ming Dynasties
 Trade (7:30 p.m. to 8:15 p.m.)
 Lesson 9: Athens and Olive Oil
 Highlights from Rest of Book (8:15 p.m. to 8:30 p.m.)
 Paperwork (8:30 p.m. to end)
LESSON 1 – OUT OF AFRICA: WHY EARLY HUMANS SETTLED AROUND THE WORLD
Source: National Geographic: Available Online. Retrieved at:
http://ngm.nationalgeographic.com/ngm/0603/feature2/images/mp_download.2.pdf
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LESSON 1 – OUT OF AFRICA: WHY EARLY HUMANS SETTLED AROUND THE WORLD
MIGRATION
• Migration: The act of moving from one
place to another with the intent to live in
another place permanently or for a longer
period of time.
Source: “What is Human Migration?” 2005. National Geographic Society. Available online at:
http://www.nationalgeographic.com/xpeditions/lessons/09/g68/migrationguidestudent.pdf
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LESSON 1 – OUT OF AFRICA: WHY EARLY HUMANS SETTLED AROUND THE WORLD
Immigration vs. Emigration
• Immigration: Migration to a place in
order to settle there
• Emigration: Migration from a place to
settle in another place
Source: “What is Human Migration?” 2005. National Geographic Society. Available online at:
http://www.nationalgeographic.com/xpeditions/lessons/09/g68/migrationguidestudent.pdf
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Reading
LESSON 1 – OUT OF AFRICA: WHY EARLY HUMANS SETTLED AROUND THE WORLD
Push vs. Pull Factors
• Push factors: Negative reasons for
wanting to leave a place (emigrate).
Examples of push factors are a lack of food
or water, natural disasters, a lack of jobs,
and wars.
• Pull factors: Positive reasons for wanting
to move to a place (immigrate). Examples
of pull factors are more food and water, a
better climate, higher wages, and freedom.
Source: “What is Human Migration?” 2005. National Geographic Society. Available online at:
http://www.nationalgeographic.com/xpeditions/lessons/09/g68/migrationguidestudent.pdf
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Activity
LESSON 1 – OUT OF AFRICA: WHY EARLY HUMANS SETTLED AROUND THE WORLD
Reasons for Migration:
Environmental and Political
• Environmental
Examples: Floods, water supply, climate,
food supply for animals
• Political
Examples: Political freedom, laws, wars
Source: “What is Human Migration?” 2005. National Geographic Society. Available online at:
http://www.nationalgeographic.com/xpeditions/lessons/09/g68/migrationguidestudent.pdf
FOCUS MIDDLE SCHOOL WORLD HISTORY © COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NY
LESSON 1 – OUT OF AFRICA: WHY EARLY HUMANS SETTLED AROUND THE WORLD
Reasons for Migration:
Cultural and Economic
• Cultural
Examples: Desire for religious freedom or
chance for a better education
• Economic
Examples: To overcome shortages of
food, housing, or space; to find better
employment or higher wages
Source: “What is Human Migration?” 2005. National Geographic Society. Available online at:
http://www.nationalgeographic.com/xpeditions/lessons/09/g68/migrationguidestudent.pdf
FOCUS MIDDLE SCHOOL WORLD HISTORY © COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NY
Economic Systems
LESSON 6 – INDIA AND THE CASTE SYSTEM IN 200 B.C.E.
Characteristics of Economic Systems
Market Economic System
What to
produce?
Businesses produce goods and services that
consumers are willing and able to buy for
prices that will yield profits for the businesses.
How to
produce?
Seeking profits, business owners decide
what resources they will use to produce goods
and services. Individuals decide what
occupations they will seek in the labor market.
For whom
to produce?
Finished goods and services are distributed
to individuals willing and able to buy them.
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LESSON 6 – INDIA AND THE CASTE SYSTEM IN 200 B.C.E.
Characteristics of Economic Systems
Command Economic System
What to
produce?
A central planning authority (government
agency) decides what and how much of
goods and services will be produced.
How to
produce?
A central planning authority (government
agency) decides what combinations of
productive resources will be used to
produce goods and services. The
government may assign people to jobs.
For whom
produce?
A central planning authority (government
agency) decides who will receive the goods
and services that are produced.
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LESSON 6 – INDIA AND THE CASTE SYSTEM IN 200 B.C.E.
Characteristics of Economic Systems
Traditional Economic System
What to
produce?
The goods and services produced today are
the same goods and services that were
produced in previous generations.
How to
produce?
The productive resources used are the same
as in past generations. Occupations are
determined largely by tradition and families.
For whom
to produce?
Finished goods and services are traded within
the group or distributed based on tradition.
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LESSON 6 – INDIA AND THE CASTE SYSTEM IN 200 B.C.E.
The Caste System
in Ancient India
• The Brahmins were the priests.
• The Kshatriya were the relatively small group of rulers and
warriors.
• The Vaishyas were farmers, merchants, and traders.
• The Shudras were typically servants and farm workers,
including mixed-race people and those who had different
religions.
• The Dalits, the outcasts or untouchables, were not recognized
as members of a caste.
FOCUS MIDDLE SCHOOL WORLD HISTORY © COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NY
Activity: What kind of economy?
Economic Systems and Choices:
Greece
 Two readings: Divide into two groups
 Would read and pair off…
LESSON 8 – ATHENS AND SPARTA: IMAGINE THE POSSIBILITIES
Compare and Contrast
Athens
Sparta
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Characteristics
 Travel was forbidden.
 Trade was discouraged.
 Military power was the focus of society.
 Slavery existed.
 Citizens lived in a city-state.
 Great works of art were created.
 Philosophy grew.
 Government was a democracy.
 Women had considerable freedom.
Characteristics
 Trade was encouraged.
 Enslaved helots were used to grow food.
 Boys learned literature, music and gymanastics.
 Boys lived in military housing and trained for war.
 Government consisted of 2 kings, assembly, and 5 ephors.
How did Athens and Sparta solve
their food problems?
LESSON 8 – ATHENS AND SPARTA: IMAGINE THE POSSIBILITIES
Societies must make choices
because of scarcity.
Scarcity: The condition that exists
because human wants exceed the
capacity of available resources to satisfy
those wants.
Productive Resources: Natural
resources, human resources, and capital
resources used to make goods and
services.
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LESSON 8 – ATHENS AND SPARTA: IMAGINE THE POSSIBILITIES
Productive resources include:
Natural Resources — "Gifts of
nature" that can be used to produce
goods and services; for example,
oceans, air, mineral deposits, forests,
and fields of land.
Human Resources — The health,
education, experience, training, skills,
and values of people; for example,
doctors, teachers, and farmers.
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LESSON 8 – ATHENS AND SPARTA: IMAGINE THE POSSIBILITIES
Productive resources include:
Capital Resources — Goods made
and used to produce and distribute
goods and services; examples include
tools, machinery, and buildings.
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Who decided how resources would
be used?
LESSON 8 – ATHENS AND SPARTA: IMAGINE THE POSSIBILITIES
Societies must make choices
because of scarcity.
Choices: Because our wants are greater
than our resources, people must make
choices. When you choose one thing, you
must give up something else, which means
there is an opportunity cost.
Opportunity Cost: The highest valued
alternative that is given up when a choice
is made.
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LESSON 8 – ATHENS AND SPARTA: IMAGINE THE POSSIBILITIES
Production Possibilities Frontier
Production Possibilities Frontier: A table or
graph that shows the various combinations of two
goods it is possible to produce with a given
amount of resources.
Imagine a society that used all of its resources
(natural, human, and capital) to produce two
goods: olives and grapes. We can illustrate their
choices on a production possibilities frontier,
shown on the next slide.
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LESSON 8 – ATHENS AND SPARTA: IMAGINE THE POSSIBILITIES
Production Possibilities Frontier
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LESSON 8 – ATHENS AND SPARTA: IMAGINE THE POSSIBILITIES
Production Possibilities Frontier
< What to be here
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Opportunity costs!!!
LESSON 8 – ATHENS AND SPARTA: IMAGINE THE POSSIBILITIES
Guns vs. Butter
Guns vs. Butter: A phrase that refers to the
trade-off that nations face when choosing to
devote more or fewer resources to military
or civilian goods and services.
Guns: Resources devoted to the production
of military goods or services.
Butter: Resources devoted to the production
of civilian goods or services.
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LESSON 8 – ATHENS AND SPARTA: IMAGINE THE POSSIBILITIES
Guns vs. Butter
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Economic Systems Across Time
 Caste System (traditional)
 Athens (market) / Sparta (command)
 Incas (command) / Aztec (market)
 Feudalism (command)
Athens and Olive Oil
 Trade lesson
 Reading on Olive Oil
 Reader’s Theater
Questions for After the First Act
 Why doesn’t Pericles grow his own food?
 Why does Themosticles grow food but not make his own
tools and weapons?
 Compared to Pericles, is Themosticles better at farming or
blacksmithing?
 If he is better at both, why doesn’t he do both?
LESSON 9 – ATHENS AND OLIVE OIL
Vocabulary
Voluntary Exchange: Trading goods and
services with other people because both
parties expect to benefit from the trade.
Absolute Advantage: The ability to
produce more units of a good or service
than some other producer, using the same
quantity of resources.
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LESSON 9 – ATHENS AND OLIVE OIL
Vocabulary
Comparative Advantage: The ability to
produce a good or service at a lower
opportunity cost than some other producer.
This is the economic basis for specialization
and trade.
Opportunity Cost: The highest valued
alternative that is given up when a choice
is made.
FOCUS MIDDLE SCHOOL WORLD HISTORY © COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NY
Questions for After First Act
 Who has an absolute advantage in farming, Pericles or





Themistocles?
Who has an absolute advantage in blacksmithing, Pericles or
Themistocles?
If Themistocles has an absolute advantage in both farming and
blacksmithing, does that mean he should do both?
According to the discussion, who is better at growing wheat,
Egypt or Athens?
Who is better at producing olive oil, Egypt or Athens?
Suppose Egypt had an absolute advantage in both. Does
Demetrios think they can find an opportunity to trade?
Questions for after the Second Act
 What were the terms of trade for the two sides?
 Does it seem like Athens will benefit from this trade? Why?
 Does it seem like Egypt can benefit from this trade? Why?
LESSON 9 – ATHENS AND OLIVE OIL
In Athens:
Producing one jar of olive oil meant giving
up one-half bushel of wheat.
The opportunity cost of
is
In Egypt:
Producing one jar of olive oil meant giving
up four bushels of wheat.
The opportunity cost of
is
FOCUS MIDDLE SCHOOL WORLD HISTORY © COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NY
LESSON 9 – ATHENS AND OLIVE OIL
Comparative Advantage: The ability to produce
a good or service at a lower opportunity cost than
some other producer.
Which country has the lower opportunity
cost of producing olive oil?
Which country has the comparative
advantage in producing olive oil?
Therefore, who should produce olive oil?
FOCUS MIDDLE SCHOOL WORLD HISTORY © COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NY
LESSON 9 – ATHENS AND OLIVE OIL
In Egypt:
Producing one bushel of wheat meant giving
up one-fourth jar of olive oil.
The opportunity cost of
is
In Athens:
Producing one bushel of wheat meant giving
up two jars of olive oil.
The opportunity cost of
is
FOCUS MIDDLE SCHOOL WORLD HISTORY © COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NY
LESSON 9 – ATHENS AND OLIVE OIL
Comparative Advantage: The ability to produce
a good or service at a lower opportunity cost than
some other producer.
Which country has the lower opportunity
cost of producing wheat?
Which country has the comparative
advantage in producing wheat?
Therefore, who should produce wheat?
FOCUS MIDDLE SCHOOL WORLD HISTORY © COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NY
LESSON 9 – ATHENS AND OLIVE OIL
The articles which it is difficult to get, one
here, one there, from the rest of the world,
all these it is easy to buy in Athens.
—Isocrates, Greek Orator (436–338 B.C.E.)
The magnitude of our city draws the
produce of the world into our harbor, so that
to the Athenian the fruits of other countries
are as familiar a luxury as those of his own.
— Thucydides,
Greek Historian (460–395 B.C.E.)
FOCUS MIDDLE SCHOOL WORLD HISTORY © COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NY
Optional
LESSON 9 – ATHENS AND OLIVE OIL
Vocabulary
Production Possibilities Frontier: A
table or graph that shows the various
combinations of two goods it is possible to
produce with a given amount of resources.
FOCUS MIDDLE SCHOOL WORLD HISTORY © COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NY
LESSON 9 – ATHENS AND OLIVE OIL
Athens’ Production Possibilities Table
Athens
All
cards
wheat
Flip
one
card
Flip
second
card
Flip
third
card
Flip
last
card
Wheat
Olive Oil
4
0
3
2
2
4
1
6
0
8
FOCUS MIDDLE SCHOOL WORLD HISTORY © COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NY
LESSON 9 – ATHENS AND OLIVE OIL
Athens’ Production Possibilities Graph
FOCUS MIDDLE SCHOOL WORLD HISTORY © COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NY
LESSON 9 – ATHENS AND OLIVE OIL
Athens’ Production Possibilities Graph
< Can be here with trade
FOCUS MIDDLE SCHOOL WORLD HISTORY © COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NY
LESSON 9 – ATHENS AND OLIVE OIL
Egypt’s Production Possibilities Table
Egypt
All
cards
wheat
Flip
one
card
Flip
second
card
Flip
third
card
Flip
last
card
Wheat
Olive Oil
16
0
12
1
8
2
4
3
0
4
FOCUS MIDDLE SCHOOL WORLD HISTORY © COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NY
LESSON 9 – ATHENS AND OLIVE OIL
Egypt’s Production Possibilities Graph
FOCUS MIDDLE SCHOOL WORLD HISTORY © COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NY
LESSON 9 – ATHENS AND OLIVE OIL
Egypt’s Production Possibilities Graph
< Can be here with trade
FOCUS MIDDLE SCHOOL WORLD HISTORY © COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NY
Highlights
 Lesson 2: Neolithic Farmers (simulation)
 Lesson 14: Medieval Europe (feudalism)
 Lesson 16: Guilds (original source lesson)
 Lesson 19: Spice Trade (supply and demand lesson)
 Lesson 21: Renaissance Banking (great banking lesson)
 Lesson 22: Mercantilists and the Midas Touch (I kind of like
it)