Basic Economic Terms

1. Basic Economic Terms • Land • Natural resources or gifts of nature that are used to produce goods and services • Labor • Productive services provided by human beings, including physical effort, skills, intellectual abilities and applied knowledge • Capital • All buildings, equipment and human skills used to produce goods and services

2. Basic Economic Terms • Means of Production • Refers to physical, non-human inputs used in production—the factories, machines, and tools used to produce wealth • Goods & Services • Goods - objects that can satisfy people's wants • Services – activities that can satisfy people’s wants • Limited Resources • Resources that cant be replaced or replaced fast enough

3. Basic Economic Terms • Supply & Demand • Supply - how much of a good producers make available • Demand – how much of a product consumers are willing to buy • The Good of Society • deciding what economic system is best for a particular society HOW…by answering 3 ?s

4. The Three Economic Questions • Societies have limited resources and the members of the society have unlimited wants. So how can we ever be satisfied? • To do so, society must answer the following questions. • What should be produced? • How should it be produced? • Who should get it?

5. What is Communism? • This is the symbol of Communism – The Hammer and Sickle Hammer for the Workers Sickle for the Peasants – the farm laborers This is Karl Marx, the ‘Father of Communism’. People who believe in his ideas are called ‘Marxists’

6. The Road to Communism • Marx and Engels studied the history of the world’s economies. • They looked at how power, industry and finance are controlled. • They saw the way countries developed in stages. Communism Socialism Capitalism Feudalism Explain these please! Primitive Communism

7. This is how humans first lived together – in small tribes. Primitive means ‘not very advanced’ e.g. hunting and gathering. Communism means that everything was shared amongst the tribe – food, jobs, belongings. No-one owned land. Eventually a group comes to power – this leads to Feudalism… Primitive Communism

8. Feudalism Under feudalism, a king or emperor or chief becomes the ruler over all the people. He gives land and privileges to ‘nobles’ who rule the people for him. The people are kept uneducated and told that god chose the king to rule. The church helps the king this way. Feudalism As trade develops, some people get richer. This leads to Capitalism… Primitive Communism

9. New Economic Philosophies

11. The struggle between workers & employers is unavoidable. • The “Haves” & the “Have-Nots” • There must be a revolution not against the gov’t, but against rich Communism “Workers of the world unite: You have nothing to lose but your chains” Karl Marx (1818-1883)

12. Feudalism to Capitalism The capitalists get more power to serve their own interests. Capitalism The business owners or capitalists get richer while the workers do all the hard work. Feudalism Capitalism creates a huge working-class of people who soon get angry at the way they are treated. They organise in unions and demand changes. This will lead to a revolution and Socialism…

13. What is Socialism? Because nothing is made for profit, all people benefit from education and health. The workers take control of the country to produce things for everyone. Socialism These ideas spread across the world to create Communism… Capitalism In the Socialist revolution all the rulers – kings, churches, capitalists are got rid of.

14. What is Communism? The remaining capitalists put up a bitter fight, but the will of the people will always win. Communism Socialism As everyone now works together, war is a thing of the past – armies are not needed. Sharing means no police are needed. Everything is provided by the people – so money becomes a thing of the past. All human activity goes towards benefiting each other – allowing all to live their lives to the full.

15. Which Economic System? TO BUY STUFF!!

16. Which Economic System?

17. Which Economic System?