Lesson 4

1. Smith believed they should be spread as widely as possible throughout the economy. 2. Marx believed that a select few should make them.

Contrast how Adam Smith and Karl Marx believed economic decision should be made?

Smith proposed that the economy actually developed from the bottom up rather than from the top down.

How did Smith challenge the prevailing view of how nations build and acquire wealth?

The Wealth of Nations

What book by did Adam Smith publish in 1776?

The Communist Manifesto

What book did Karl Marx write with Friedrich Engles?

To refrain from any regulation of economic activity.

What do those who advocate laissez faire economics want government to do?

Who should make economic decisions?

What question is the basic divide between capitalism and socialism?

1. The Working Class (proletariat) 2. The Ownership Class (The Bourgeoisie)

What two classes did Marx divide society into?

Mercantilism

What was the prevailing economic philosophy when Adam Smith published his book?

Prussia

Where was Karl Marx born?

Adam Smith

Who is often called the father of modern economics?