Units 7-9

• The Wealth of Nations was written

  1776
• Rational


  (in classical economic theory) economic agents are able to consider the outcome of their choices and recognise the net benefits of each one
• Consumers act rationally by


  Maximising their utility
• Producers act rationally by


  Selling goods/services in a way that maximises their profits
• Workers act rationally by


  Balancing welfare at work with consideration of both pay and benefits
• Governments act rationally by


  Placing the interests of the people they serve first in order to maximise their welfare
• Rationality in classical economic theory is a flawed assumption as people usually don't act rationally
• A firm increases advertising

  Demand curve shifts right
• Demand curve shifting right

  Increases the equilibrium price and quantity
• Marginal utility


  The additional utility (satisfaction) gained from the consumption of an additional product
• If you add up marginal utility for each unit you get total utility
• there was a Chinese Republic it's in Taiwan right now don't tell China that they get mad
• Causes of World War I

  • militarism
  • alliances
  • imperialism
  • nationalism
• Total War


  Everything's involved, all the people, everyone of the country is involved, no rules, everything's out the window
• new military technology led to increases in Wartime casualties
• New military technology


  • Tanks
  • Gas
• in between the Wars you need to know one thing artillery
• War economy


  Governments begin to take a more active role in economic life, they get involved, we need restrictions, we need protections
• Unresolved tensions in the inter-war period


  • Imperialist expansion continues, colonies face anti-imperial resistance
• Causes of World War II

  • Unsustainable peace after WWI
  • Global economic crisis
  • Rise of fascist and totalitarian regimes
  • Aggressive militarism in Nazi Germany
• World War II is a total war, they use art, media and intensified forms of nationalism to mobilize populations
• New military technology in WWII

  • Atomic bomb
  • Firebombing
• the only things you need to know specifically is the Holocaust and to other atrocities acts of genocide or ethnic violence
• The atomic bomb was a big deal and one of the biggest events of World War II
• Firebombing killed more people in Japan than the atomic bombs
• World War I and World War II both involved the use of colonies to draw people into the wars
• Totalitarian aggression was a cause of World War I and World War II
• Atomic bombs and firebombings were new weapons used in World War II
• Acts of genocide or ethnic violence other than the Holocaust

  • The Holodomor
  • Cambodian genocide
  • Rwandan genocide
  • Armenian genocide
• Holodomor


  A famine in Ukraine caused by Stalin's policies
• Cambodian genocide


  A communist purge in Cambodia
• Rwandan genocide


  Ethnic tensions between the Hutu and Tutsi left over from Belgian colonization
• Armenian genocide


  The first genocide, which occurred during World War I and was a blueprint for Hitler
• Proxy war


  A war fought between two sides that are not directly fighting each other, but are supporting opposite sides
• During the Cold War, the United States and Soviet Union did not fight each other directly due to the threat of nuclear war, but instead engaged in proxy wars with their respective allies
• The non-aligned movement was a group of countries that did not align with either the US or Soviet Union during the Cold War
• The terms "First World", "Second World", and "Third World" originated during the Cold War to refer to US allies, Soviet allies, and non-aligned countries respectively
• The Cold War led to an arms race and space race between the US and Soviet Union
• The spread of communism was a major concern during the Cold War
• Nuclear proliferation


  Leads to an arms race between the US and Soviet Union