Industrial Revolution – Economic Decision making



Industrial Revolution – Economic Decision making

▪ Economics – The way in which societies make decisions about the goods and services they will provide to meet the needs of the citizens

▪ Standard of Living - Is a measure of the consumption of goods and services those individuals and groups privately and/or collectively can achieve. Standard of livings of different countries are often compared by comparing things on a per capita basis like;

o The number of Hospitals

o The number of schools

o Personal income

▪ Infrastructure – Industrial societies have developed a complex system of social organizations which make up an infrastructure. The purpose of an infrastructure is to make possible the production of goods and services necessary to satisfy human needs and wants.

▪ In terms of social structure, the Industrial Revolution witnessed the triumph of a middle class of industrialists and businessmen over a landed class of nobility and gentry.

▪ Ordinary working people found increased opportunities for employment in the new mills and factories,

▪ Paradigms – people choose and/ or accept patterns of ideas, beliefs and values know as paradigms. Paradigms provide a set of rules and regulations which can be used as criteria for deciding what is real, acceptable, and/or significant.

Intellectual paradigms of the Industrial Revolution

Capitalism

▪ Capital

o Is wealth in the form of money and property that can be used to make more money

▪ Capitalism

o Economic and political system dependent on private capital and profit-making

o It is usually considered to involve the right of individuals (or corporations) to trade capital goods, labor and money in a free market.

o Free Market - where price is determined by unregulated supply and demand

o Emerged from the writings of Adam Smith

Communism

▪ Ideas created by Karl Marx and Friedrich Engels

▪ A social system in which most property is publicly owned and each person works for a common benefit – A form of socialism

▪ Controlled Market - where supply, demand, and price are set by a government

| |Communism |Capitalism |

|Qualities |Gov’t owned all farmland |Private Ownership |

| |Gov’t owns all business |Supply and Demand |

| |Wages according to need |No Gov’t controls on business |

| |Prices of goods set by Gov’t |Freedom |

| |Essentials- Cheap |Profit motivated |

| |Luxuries - Expensive |Inequality – gap between rich and poor |

|Theories it is |Equality |Competition |

|based on |Co-operation |Hard Work and innovation |

| |Order |“Invisible Hand” – demand will regulate what is right and|

| |Security |wrong |

| | |Private ownership |

| | |Free-enterprise |

Industrial Revolution – Economic Decision making

▪ Economics –_______________________________________________________ __________________________________________________________________

Standard of Living - Is a measure of the __________________________and services that individuals and groups privately and/or collectively can achieve. Standard of livings of different countries are often compared by comparing things on a per capita basis like;

o

o

o

▪ Infrastructure – Industrial societies have developed a complex system of ________________________ which make up an infrastructure. The purpose of an infrastructure is to make possible the ___________________________________ necessary to satisfy human needs and wants.

▪ In terms of social structure, the Industrial Revolution witnessed the triumph of a _______________________of industrialists and businessmen over a landed class of nobility and gentry.

▪ Ordinary working people found increased opportunities for __________________ in the new mills and factories,

▪ Paradigms – people choose and/ or accept patterns of ideas, beliefs and values know as paradigms. Paradigms provide a set of rules and regulations which can be used as criteria for deciding what is real, acceptable, and/or significant.

Intellectual paradigms of the Industrial Revolution

__________________________

▪ Capital

o

▪ Capitalism

o Economic and political system dependent on ____________________ and ___________________

o It is usually considered to involve the __________________________ (or corporations) to trade capital goods, labor and money in a free market.

o ______________________- where ____________ is determined by

unregulated ____________________________

o Emerged from the writings of Adam Smith

______________________

▪ Ideas created by Karl Marx and Friedrich Engels

▪ A social system in which most property _________________and each person

works for a_______________________– A form of socialism

▪ ______________________- where supply, demand, and price are set by a government

| |Communism |Capitalism |

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