World History: Teaching the Economic Concepts Jean Walker
Director, West Texas Center for Economic Education College of
Business West Texas A&M University 1
Slide 2
This powerpoint was used in a workshop at ESC 16 in Amarillo on
June 26, 2012. It includes Lessons 18, 20, and 11 from the Focus:
Middle School World History publication from CEE. Many slides are
procedural directions for teachers. Any teacher can use the
powerpoint as a springboard for teaching the lessons with some
modifications. 2
Slide 3
Columbus the Entrepreneur; Queen Isabella the Venture
Capitalist Jean Walker Director, West Texas Center for Economic
Education College of Business West Texas A&M University Canyon,
Texas [email protected] 3
Slide 4
These three lessons are all related and can be taught in almost
any order. Lessons 11 and 20 use the Incas and Aztecs to teach
economic systems. Lessons 18 and 20 show how explorers like
Columbus changed the new world. Lesson 18: Christopher Columbus,
Entrepreneur? Queen Isabella, Venture Capitalist? Lesson 20: The
Columbian Exchange Lesson 11: Economic Systems of the Incas and
Aztecs 4
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Workshop and Materials Funded and/or Sponsored by: 5
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STARR World History Blueprint 6
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What do these people have in common? 7
Slide 8
They are both ENTREPRENEURS. 8
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What is an entrepreneur? An entrepreneur has an idea for a
business venture (good or service) and bears the risk of success or
failure associated with the venture. Why do this? To seek profits.
What is profit? The income that remains after a business pay all
expenses. Entrepreneur: from the French entreprendre to undertake
9
Slide 10
An entrepreneur has the vision to: Discover or invent a new
product (good) Create a new service Improve an existing good or
service Better price More choice Better quality More convenience
Offer a complement for existing goods or services Offer a
substitute for existing goods or services Reorganize an existing
market Solve a problem for a customer New technologies may create
these opportunities. 10
Slide 11
How do entrepreneurs benefit society? Increased employment
(which expands economic opportunities for individuals) Increased
competition (which lowers prices and increases choices) Increased
economic growth (by encouraging new methods & technologies)
11
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Funding the dream... How do entrepreneurs fund their dreams?
Personal savings Borrowing Banks Friends and family Investments
from others Venture capitalists Friends and family 12
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Back to these entrepreneurs: How did each fund his enterprise?
13
Slide 14
Facebook funding: Zuckerberg launched Facebook on February 4,
2004, using his own money earned since middle school from
programming jobs. By the end of the semester, it had 100,000 users
on 30 college campuses. A well-connected Harvard classmate took
Zuckerberg to New York and introduced him to a financier who
offered him $10 million for the company. He declined. That summer
he decided to relocate the company to a house in Palo Alto,
California. (Why Palo Alto? See next slide.) In Palo Alto,
Zuckerberg met and became friends with Sean Parker, who had
launched Napster and Plaxo. Over the summer, the number of users
grew to 200,000. When fall came, Zuckerberg realized he needed more
money, so Parker introduced him to Reid Hoffman, the founder of
LinkedIn, who arranged a meeting with Peter Thiel, PayPals founder,
who invests $500,000 for a 10.2% stake. We would use the term
VENTURE CAPITALIST to describe Thiel. 14
How do venture capitalists work? Venture capital (VC) is
private equity capital used to fund early-stage firms with
attractive growth prospects. Venture capitalists maintain strong
oversight over the firms they invest in and have clearly defined
exit strategies. Typically the exit strategy involves taking the
company public, where the IPO gives a publicly traded value to the
shares. Angel capitalists (angels) are wealthy individual investors
who invest in promising early-stage companies in exchange for a
portion of the firms equity. 17
Slide 18
Back to Columbus... What do we actually know about Columbus?
Columbus sailed the ocean blue in 1492 18
Slide 19
Christopher Columbus: Early Years Born in Genoa, Italy Father:
an Italian wool weaver who also owned a cheese stand and then a
tavern 3 brothers (Bartolomeo was a cartographer) Columbus sailed
on a Genoese ship 1473 Columbus apprenticed as a business agent In
his business, Columbus traveled to the Aegean Sea, northern Europe,
England, Ireland, and Iceland In Lisbon, he married the daughter of
a Portuguese nobleman and his son Diego was born 1482-1485:
Columbus traded along the coasts of West Africa He also knew Latin,
Portuguese, and Castilian and read widely about astronomy,
geography, and history (including the writings of Marco Polo) He
was interested in the Bible and Biblical prophecies 19
Slide 20
Why was trade & exploration so important? Europeans
searched for spices, gold, and precious stones ( See Lesson 19
Whats the Big Deal About Spices? ) The Silk Road to China and India
was a safe land passage years, bringing silk, ceramics, gunpowder,
and magnetic compasses from China. Copper, dates, and finished
goods were accumulated along the way. Gold was used for trades. See
Lesson 7 The Silk Road When Constantinople fell to the Ottoman
Turks in 1453, passage became more difficult. A sea route to Cathay
(China) to replace the Silk Road was sought by traders in many
countries. Silk Road Travels of Marco Polo 20
Slide 21
What was known about the world? MAPS of the era show that most
scholars did recognize the world was round, not flat. Fra Mauo map,
1459 Genoese map, 1457 Pietro Vescontes World Map, 1321 21
Slide 22
What did Columbus believe? Columbus focused on a map made by
Toscanelli: He believed ships could sail west to find China and
began to seek financing to support his plan. 22
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Read Activity 18.2: Columbus Looks for a Venture Capitalist, A
Readers Theater 23
Slide 24
Distribute Activity 18.3, telling students they will use
information from Activity 18.1. Have students fill in the charts.
(p. 285) 24
Slide 25
King Ferdinand and Queen Isabella, Venture Capitalists?
Characteristics of Venture Capitalists Example from Columbus
Voyage? Invest in new technologies Sailing west to reach India or
China was an untested idea. Even though most people did not think
the Earth was flat, this journey presented new challenges. Invest
in risky ventures Many things could go wrong that would prevent
Columbus from returning to Spain: getting lost, starving,
shipwreck, illness and injury, etc. And Columbusfor all his passion
might have been wrong. Own a portion of the company Even after
granting all Columbus demands, Spain still retained seven-eighths
of any returns from the first voyage, and seven-eighths of the
returns from subsequent voyages. FOCUS MIDDLE SCHOOL WORLD HISTORY
COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NY LESSON 18 CHRISTOPHER
COLUMBUS, ENTREPRENEUR? QUEEN ISABELLA, VENTURE CAPITALIST? 25
Slide 26
Columbus as Entrepreneur? Characteristics of Entrepreneurs
Example from Columbus Voyage? Start new businesses/ enterprises
Sailing west to reach India or China was an untested idea. Even
though most people did not think the Earth was flat, this journey
presented new challenges, mainly because the distances involved
were much longer than Columbus estimated. Bear all the risks of
starting the business All Queen Isabella and Spain risked was
investment capital. Columbus was risking his life. Many things
could go wrong that would prevent Columbus from returning to Spain:
getting lost, starving, shipwreck, injury and illness, etc. If the
venture had failed, Columbus and his crew might be dead. Invest
some of own resources in the business Columbus invested his time
and resources. He also asked that he be allowed to invest an amount
equal to one-eighth the cost of additional journeys in return for
one-eighth of the profits. FOCUS MIDDLE SCHOOL WORLD HISTORY
COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NY LESSON 18 CHRISTOPHER
COLUMBUS, ENTREPRENEUR? QUEEN ISABELLA, VENTURE CAPITALIST? 26
Slide 27
Cost/Benefit Analysis of Spains investment in the voyage:
Costs: 3 ships Crew & supplies % of profits to Columbus Titles
for Columbus Benefits: Vast riches (spices, gold, precious stones)
Glory of discovery (finding new route to China) Expansion of
kingdom Spread of Christianity 27
Slide 28
Why did Columbus need a royal investor? He needed the power of
a throne to defend any claims made to the territory he discovered.
That is why he focused on King John of Portugal then King Ferdinand
and Queen Isabella. 28
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THE FOUR VOYAGES OF COLUMBUS: 1 2 3 4 29
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Results: Columbus was wrong about the distance west from the
Canary Islands. The greater distance was mitigated by having
easterly winds which took his ships to the Bahamas in 5 weeks.
Without the easterly winds, his food and drink could have been
exhausted before he sighted land. By taking a more northern route
back to Spain, he caught the westerly winds which also made that
trip shorter. Columbus never realized he had found a new
continenthe always believed Japan and China were very close to
where he explored. 30
Slide 31
What about the other entrepreneur? Facebook went public on May
18, 2012, @ $38/share. That initially valued FB at $104 billion.
Zuckerberg sold shares worth $1.2 billion, and the rest of his
stock was worth $19.1 billion. Facebook stock has since dropped,
reducing the value of the company and causing grief for the Nasdaq,
the subject of lawsuits involving their inability to support
trading in a timely way on the day of the IPO. 31
Slide 32
Lesson 20: The Columbian Exchange In this lesson, students
learn that the Columbian Exchange resulted in an enormous exchange
of goods, resources, and institutions between the Old World and the
New World and that the results of the Exchange were both positive
and negative. Students learn that Tenochtitlan, the capital city of
the Aztec civilization, had a relatively well-developed economy in
the 15th century despite the lack of capital resources such as iron
tools, wheels, and draft animals. Students learn that the Aztecs
adopted legal institutions that protected property rights and
supported a market economy. The Spanish, who conquered the Aztecs
in 1521, replaced these with institutions that restricted the
ability of the native population of Mexico to produce and trade.
32
Slide 33
Trading in the Old World New World Market: Activity 20.1, p.
343 Half of the students will be New World Consumers and the other
half will be Old World Consumers. Each New World Consumer will be
given two New World food cards. Each Old World Consumer will be
given two Old World Food Cards. Students will have five minutes to
trade their cards. L ESSON 20 T HE C OLUMBIAN E XCHANGE F OCUS M
IDDLE S CHOOL W ORLD H ISTORY C OUNCIL FOR E CONOMIC E DUCATION, N
EW Y ORK, NY 33
Slide 34
Trading in the Old World New World Market (Round 1) New World
Consumers may only trade with other New World Consumers. Old World
Consumers may only trade with other Old World Consumers. If you
prefer the cards you were given, you dont have to trade. L ESSON 20
T HE C OLUMBIAN E XCHANGE F OCUS M IDDLE S CHOOL W ORLD H ISTORY C
OUNCIL FOR E CONOMIC E DUCATION, N EW Y ORK, NY 34
Slide 35
Trading in the Old World New World Market (Round 2) Students
will have another five minutes to trade their cards. You can now
trade with anyone in either the New World or Old World. If you
prefer the cards you were given, you dont have to trade. L ESSON 20
T HE C OLUMBIAN E XCHANGE F OCUS M IDDLE S CHOOL W ORLD H ISTORY C
OUNCIL FOR E CONOMIC E DUCATION, N EW Y ORK, NY 35
Slide 36
Trading in the Old World New World Market (After Round 2) Those
with a card that has an X on the back have been exposed to
disease(s). Old World Consumers: You have immunity from the
disease(s). New World Consumers: You have no immunityyou will
perish! L ESSON 20 T HE C OLUMBIAN E XCHANGE F OCUS M IDDLE S CHOOL
W ORLD H ISTORY C OUNCIL FOR E CONOMIC E DUCATION, N EW Y ORK, NY
36
Slide 37
L ESSON 20 T HE C OLUMBIAN E XCHANGE F OCUS M IDDLE S CHOOL W
ORLD H ISTORY C OUNCIL FOR E CONOMIC E DUCATION, N EW Y ORK, NY 37
Use the complete list in Activity 20.2 on pages 348 and 349.
Slide 38
The Rise and Fall of Tenochtitlan (Activity 20.3 page 350-351)
38 Tenochtitlan (now Mexico City), the capital of the Aztec empire,
had a population of 250,000 in 1492. The city was located on an
island in Lake Texcoco; canals and caseways moved goods and people;
dikes controlled flood waters and aqueducts carried water to the
city.
Slide 39
The Rise and Fall of Tenochtitlan 39 The Aztecs had no iron
tools, wheels, or work animals. They specialized in growing one
crop or making one good and then traded. Spanish explorers found a
central market visited by 60,000 people per day trading building
materials, clothing, jewelry, and other goods.
Slide 40
The Rise and Fall of Tenochtitlan 40 The Aztecs legal system
protected property rights. People could own and sell property. They
had rules against dishonest trade, a population big enough to
support trade, and legal institutions that allowed trade to grow.
Their govt. imposed steep taxes. Tribes conquered by the Aztecs
also paid high taxes, so they fought with Cortes against the Aztecs
in 1521 when he conquered the Aztec empire under Moctezuma I. The
Spanish had horses and steel weapons, which helped them conquer the
Aztecs. Diseases such as smallpox brought by the Spanish caused
sickness and death. Depiction of Marketplace
Slide 41
The Rise and Fall of Tenochtitlan The Spanish conquistadores
destroyed Tenochtitland and filled in the lakes, rebuilding it as
Mexico City. The conquistadores required all trade with Spanish
settlements in the New World to pass through Seville and gave power
over trade to a small merchant guild in Mexico City, which only
allowed a small number of people to own land. Limits were placed on
the ability of Mexicans to own their own businesses. Legal
institutions were exchanged as well as goods in the Columbian
Exchange. 41
Slide 42
Lesson 11: Economic Systems of the Incas and Aztecs This lesson
includes much of the information about the Aztecs that is in Lesson
20, The Columbian Exchange. This is a good lesson for teaching
about economic systems in their most basic forms: Traditional
systems Command systems Market systems 42
Slide 43
All societies have scarcity because societies have limited
resources and unlimited wants, so each society has to make choices.
Economic System: The institutional framework of formal and informal
rules that a society uses to determine: What to produce How to
produce For whom to produce How a society or nation allocates its
resources forms its economic system. L ESSON 11 E CONOMIC S YSTEMS
OF THE I NCAS AND A ZTECS F OCUS M IDDLE S CHOOL W ORLD H ISTORY C
OUNCIL FOR E CONOMIC E DUCATION, N EW Y ORK, NY Basic Economic
Proposition
Slide 44
Lesson 11: Economic Systems of the Incas and the Aztecs This
lesson has a production activity that introduces the types of
economic systems. It also includes a reading describing the systems
of the Incas and Aztecs. The production activity is a good way to
teach about the systems, but you can skip it and use the reading.
44
Slide 45
Activity 11.1: On page 178 are instructions for each of three
production teams. Each group should have 4 or 5 students, (but
Group B must have 5 students.) Groups will produce jewelry made
from macaroni. For each group you will need: string or yarn a ruler
scissors colored markers tubular macaroni Show the production
specifications on the next slide. 45
Slide 46
Production Specifications L ESSON 11 E CONOMIC S YSTEMS OF THE
I NCAS AND A ZTECS F OCUS M IDDLE S CHOOL W ORLD H ISTORY C OUNCIL
FOR E CONOMIC E DUCATION, N EW Y ORK, NY Production StepsOne
BraceletOne Necklace Cut piece of string10 inches long16 inches
long Draw dots on macaroni using two different color markersuse one
color per piece of pasta 10 pieces of macaroni5 with each color dot
16 pieces of macaroni8 with each color dot Place macaroni on string
10 pieces of macaroni alternate color dots 16 pieces of
macaronialternate color dots Knot stringKnot two ends of string
together to create a bracelet Knot two ends of string together to
create a necklace Trim knot using scissors Trim knot
Slide 47
Activity 11.1: After showing production specifications to the
whole class, give each group their additional instructions and
explain they must follow them. 47
Slide 48
Activity 11.1: 48
Slide 49
Activity 11.1: 49
Slide 50
Activity 11.1: After each group has instructions, give them 15
minutes to produce. Call time in 15 minutes. Explain that the value
of a necklace is $10 and the value of a bracelet is $5. Have each
group report so you can fill out the production form on the next
slide. 50
Slide 51
Production Recording Sheet Group# of Group Members #
ProducedValue of Production BraceletsNecklaces L ESSON 11 E CONOMIC
S YSTEMS OF THE I NCAS AND A ZTECS F OCUS M IDDLE S CHOOL W ORLD H
ISTORY C OUNCIL FOR E CONOMIC E DUCATION, N EW Y ORK, NY
Slide 52
Activity 11.1: When Group A reports, tell them that it is
tradition that the men in the group divide the bracelets equally
among themselves and have them do that after you record their
production. If Group B reports more than five bracelets or any
necklaces, tell them the extra output will go to the central
planners. Record 5 bracelets at $5, and as the Central Planner,
seize the rest. Then as the Central Planner, distribute the 5
bracelets the group can keep any way you want. Tell Group C you
will pay them the value of their whole output and they can use the
money to buy whatever goods they want. 52
Slide 53
Activity 11.1: Discussion Questions What differs about
production output of groups? What explains the differences? What is
different about the value of what the groups produced? What
explains this? 53 Then have each group explain how the group
decided what to produce, how to produce it, what job each member of
the group would have, and who would get the final product. Use the
following slide to focus their discussion. Use the next slide to
put names to those production systems.
Slide 54
Economic Systems GroupWhat to Produce How to Produce For Whom
to Produce A B C L ESSON 11 E CONOMIC S YSTEMS OF THE I NCAS AND A
ZTECS F OCUS M IDDLE S CHOOL W ORLD H ISTORY C OUNCIL FOR E CONOMIC
E DUCATION, N EW Y ORK, NY
Slide 55
Systems Definitions Command System: An economy in which most
economic issues of production and distribution are resolved through
central planning and control. Market System: An economy that relies
on a system of interdependent market prices to allocate goods,
services, and productive resources and to coordinate the diverse
plans of consumers and producers, all of them pursuing their own
self-interest. Traditional System: An economy in which customs and
habits from the past are used to resolve most economic issues of
production and distribution. L ESSON 11 E CONOMIC S YSTEMS OF THE I
NCAS AND A ZTECS F OCUS M IDDLE S CHOOL W ORLD H ISTORY C OUNCIL
FOR E CONOMIC E DUCATION, N EW Y ORK, NY
Slide 56
Read Activity 11.2 Economic Systems of the Incas and Aztecs
Many societies before the Incas and the Aztecs in Pre-Columbian
Latin America followed a domestic mode of production. The groups
were self-sufficient. They produced and gathered everything they
needed. The men fished, hunted, produced stone tools, and engaged
in warfare. Women were responsible for weaving, cooking, gathering
food and collecting water. Men and women worked together in
agriculture and house construction. 56
Slide 57
The Incan Society : (early 1200 late 1500) In Incan society,
all land, the products of the land, and the labor output belonged
to the state. Central authority collected resources and stored
large amounts of goods in warehouses and then redistributed. Incan
administrators kept track of these goods using the khipu, a system
of knotted strings. Inca controlled all craft specialists and what
they produced. The centralized Incan state provided all of the
needsmaterial and spiritualfor its people. 57
Slide 58
The Incan Society : (early 1200 late 1500) The Incan Empire
lacked currency and had few central markets. Trading was controlled
by the state and accomplished through barter. Military conquest and
expansion were important to the Incans; conquests resulted in more
subjects for labor and tributes. Tributes were goods that provinces
were required to pay, similar to taxes. Tributes were important for
state financing. 58
Slide 59
Aztec society (1200 to 1500) 59 Communal and private land was
controlled by the nobles. Communal land was allocated to commoners
in exchange for military service and for labor and food for the
noble household. The Aztec created chinampas, artificial islands or
floating gardens. Raising crops on chinampas created a surplus of
farm goods, which meant Aztecs did not have to grow their own
crops. Aztec workers could fully specialize in other areas of
production. Specialized production became quite extensive in the
Aztec Empire. Specialists such as feather workers, paper makers,
wood carvers, charcoal makers, obsidian tool- makers, and hide
tanners achieved a guild-like status.
Slide 60
Aztec society (1200 to 1500) 60 Markets were central to the
Aztecan economy at all levels. Towns held daily markets selling
basic and luxury goods. Many farmers and merchants came to the
market to sell their produce and products. Even commoners could
exchange their surplus goods. It was illegal to exchange outside
the markets. A portion of goods brought to market was paid to the
ruler. About 60,000 people came into the markets daily to buy food,
firewood, slaves, clothing, jewelry, feathers, etc. using commodity
money such as cacao beans and quills.
Slide 61
Aztec society (1200 to 1500) 61 Military conquest was important
to the Aztecs. The Aztecan system also used tributes to support the
military but allowed individuals to receive tributes of luxury
items as payment or rewards. Individuals could exchange the
tributes in the marketplace for more practical items.
Slide 62
Use Activity 11.3, Economic Systems Review, to assess
understanding. Answers: Traditional 3, 9, 12 Command 1, 6, 7 Market
2, 4, 5, 11 62
Slide 63
Mayan Civilization Although the World History TEKS include the
Mayan Civilization alongside the Incas and Aztecs, this book has no
lessons on the Mayans. 63
Slide 64
64 Jean Walker Director, West Texas Center for Economic
Education College of Business West Texas A&M University Canyon,
Texas 79016 806-651-2515 [email protected]