Today we talked about economics! We defined some key terms (all of which are listed below), looked at types of goods, and prepared ourselves for some Gilded Era econ next week.
Your homework is to finish the "American Before and After" assignment we started yesterday. Here are the instructions:
Create a visual metaphor to represent the United States before and after the Civil War:
House, Kitchen, Car, Sports Team, Phone, Clothes, etc.
On the before label 6 facts (using evidence/quotes from the text) about life in the United States before the Civil War
3 Positive, 3 Negative
On the after label 6 facts (using evidence/quotes from the text) about life in the United States after the Civil War
3 Positive, 3 Negative: Chapter 13 will help here
On the back write a thesis statement for the following prompt:
How did the Civil War change the United States?
And here are some terms:
The Invisible Hand (just as creepy as it sounds)
The idea that a capitalist market functions best when left alone.
Theory claiming that the allocation of resources will be taken care of by “the invisible hand”
Laissez Faire Government: “Hands off” Government
Producers: Those who make things (or own business)
Consumers: Those who buy things
Investors: Those who fund inventors
Inventors: Those who create new products
Supply: The amount of goods available
Demand: The amount of goods desired
Surplus: When supply is greater than demand
Scarcity: When demand is greater than supply
Equilibrium: When demand is equal to supply
Types of Goods (Supply)
Inferior Good: Goods that see a drop in demand when income increases. eg. “value” brands
Normal Good (Elastic Goods): Goods that see an increase in demand when income increases.
Luxury Good: Goods that see a high increase in demand when income increases eg. Tesla Cars
All luxury goods are normal goods, but all normal goods are not luxury goods
Complementary Goods: Goods that are used together
Substitute Goods: Goods which have alternatives
Types of Demand:
Elastic Demand: A change in supply/price will cause a large change in demand
Inelastic Demand: A change in supply/price will cause a small change in demand
During the Gilded Era, large corporations begin to create monopolies
Monopoly is a supply side function in economics