World History: New Economic Theories

Workers competed for jobs in the model factory started by Robert Owen because

he built schools.

In The Communist Manifesto, Karl Marx hypothesized that capitalism would fail if workers _____________.

revolted

exploit

to unfairly use someone or something for benefit

minority

a group that represents less than half of a population

According to Karl Marx, the economic ideas behind socialism would lead to a

communist revolution.

The following passage is from The Communist Manifesto written by Karl Marx in 1848. "Let the ruling classes tremble at a Communist revolution. The proletarians [workers] have nothing to lose but their chains. They have a world to win. Working men of all countries, unite!" Which best explains what Marx hoped to get across?

Workers should unite in the communist movement.

proletariat

a term used to identify the working class in industrial societies

An economic theory that calls for workers to take control of factories is ______________.

communism

Karl Marx developed the economic theory of

communism.

laissez-faire

economic policy that allows businesses to run with little interference from the government

capitalism

economic system in which a country's industry and trade are controlled by private owners and not the government

socialism

economic theory that stresses government management of the production and distribution of goods

What two principles form the basis for capitalism?

private ownership and free markets

What does the author argue is most responsible for America's wealth?

the achievements of individuals who have worked to create wealth for themselves

means of production

the raw materials, factories, tools, and machines used in the production process

Every individual is continually exerting himself to find out the most advantageous employment for whatever capital he can command. It is his own advantage, indeed, and not that of the society which he has in view. But the study of his own advantage naturally leads him to prefer that employment which is most advantageous to the society. Background information: Adam Smith published The Wealth of Nations in 1776. In this passage, he discusses the principle of self-interest in a capitalist system. According to Smith, what is the primary economic motivation for most people?

to find employment where they can make the most money

Let the ruling classes tremble at a Communistic revolution. The proletarians [workers] have nothing to lose but their chains. They have a world to win. Working men of all countries, unite! What was the authors' most likely purpose in writing this passage?

to inspire the workers of the world to join the communists

Explain in a few sentences why a historian might not think that Engels's description reflects a completely accurate picture of what life was like in England during 1844. Which ideas did you include in your answer? Select all that apply.

-Engels was a communist. -He wanted to inspire a revolt against the upper classes. -He might have interpreted facts to better support his agenda.

Adam Smith believed that fair prices for goods are determined in a capitalist system

through competition between businesses.

In a dictatorship of the proletariat, who controls the government?

working classes

Every great city has one or more slums, where the working-class is crowded together. . . . The streets are generally unpaved, rough, dirty, filled with vegetable and animal refuse [trash], without sewers or gutters, but supplied with foul, stagnant pools instead. . . .The modern art of manufacture has reached its perfection [highest level] in Manchester [in England]. . . . The degradation [disrespect] to which the application of steam-power, machinery and the division of labor reduce the working-man, and the attempts of the proletariat to rise above this abasement [low condition], must likewise be carried to the highest point and with the fullest consciousness. Background information: Friedrich Engels was a German socialist whose family was wealthy cotton manufacturers. When he was twenty-two, he was sent to work at the family factory in Manchester, England. This excerpt is from his book, The Condition of the Working Class in England, which was published in 1844. Which of these lines from the text provides a clue that Engels is a socialist and therefore opposed to capitalism?

"the attempts of the proletariat to rise above this abasement"

What are the characteristics of capitalism? Select all that apply.

-Farms and factories are owned by private individuals. -People are free to pursue their own self-interests. -Supply and demand determine which goods, and how many, are produced.

Explain in a few sentences whether this document could be used to support Engels's claims about the working class in England. Document: A diary entry from 1844, written by a worker living in Manchester. It describes crowded and filthy conditions in that city. Which ideas did you include in your answer? Select all that apply.

-It could support Engels's claims. -It provides similar details to Engels. -It comes from the same time period as Engels.

What moderate reforms did European socialists support? Check all that apply.

-assistance for the poor -better working conditions -minimum wage laws

Capitalism

-property is owned by individuals -promotes laissez-faire government -people pursue their self interests

Socialism

-wealth is equally distributed -government controls the economy -property is communally owned

Every great city has one or more slums, where the working-class is crowded together. . . . The streets are generally unpaved, rough, dirty, filled with vegetable and animal refuse [trash], without sewers or gutters, but supplied with foul, stagnant pools instead. . . .The modern art of manufacture has reached its perfection [highest level] in Manchester [in England]. . . . The degradation [disrespect] to which the application of steam-power, machinery and the division of labor reduce the working-man, and the attempts of the proletariat to rise above this abasement [low condition], must likewise be carried to the highest point and with the fullest consciousness. Background information: Friedrich Engels was a German socialist whose family was wealthy cotton manufacturers. When he was twenty-two, he was sent to work at the family factory in Manchester, England. This excerpt is from his book,The Condition of the Working Class in England, which was published in 1844. What is the main idea of this passage?

Industrialization has created poor working and living conditions for the people.

Background information: This passage, about self-interest, is from Adam Smith's The Wealth of Nations, which was published in 1776. Every individual is continually exerting himself to find out the most advantageous employment for whatever capital he can command. It is his own advantage, indeed, and not that of the society which he has in view. But the study of his own advantage naturally leads him to prefer that employment which is most advantageous to the society. According to the passage, how do people pursuing their own self-interests benefit society?

The highest-paying jobs are also those that benefit the society the most.