White Plains Middle School



Smith and Marx: A Worldview of Difference

Global History and Geography II Name: ______________________________

E. Napp Date: ______________________________

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|1. Which written work criticized the capitalist system during the | Base your answer to question 5 on the passage below and on your |

|Industrial Revolution? |knowledge of social studies. |

|(1) Communist Manifesto by Karl Marx and | |

|Friedrich Engels |. . . The need of a constantly expanding |

|(2) “White Man’s Burden” by Rudyard Kipling |market for its products chases the bourgeoisie over the whole surface |

|(3) The Wealth of Nations by Adam Smith |of the globe. It must nestle everywhere, settle everywhere, establish |

|(4) The Origin of Species by Charles Darwin |connections everywhere. . . . |

| |— Karl Marx and Friedrich Engels |

|2. Which characteristic is associated with an economy based on the | |

|principles of laissez-faire? |5. Which historical event do Marx and Engels believe |

|(1) prices based on supply and demand |created the situation described in this passage? |

|(2) production quotas established by the central government |(1) Cold War |

|(3) distribution of goods determined by the |(2) World War I |

|customs of a traditional society |(3) Russian Revolution |

|(4) some goods exchanged for other goods of |(4) Industrial Revolution |

|equal value | |

| |6. Karl Marx predicted that laissez-faire capitalism would result in |

|3. In The Communist Manifesto, Karl Marx and Friedrich Engels |(1) a return to manorialism |

|expressed the idea that |(2) a revolution led by the proletariat |

|(1) religion should be the most important factor in society |(3) fewer government regulations |

|(2) power should be determined by a person’s wealth |(4) an equal distribution of wealth and income |

|(3) profits from work should belong to the workers | |

|(4) supply and demand should control prices |7. Base your answers to questions 7 on the speakers’ statements below |

| |and on your knowledge of social studies. |

|4. Adam Smith would most likely agree with which statement? |Speaker A: Government should not interfere in relations between |

|(1) Revolution is the only solution to economic problems. |workers and business owners. |

|(2) Five-year plans are necessary in order to industrialize. |Speaker B: The workers will rise up and overthrow the privileged |

|(3) All nations would benefit from an agricultural economy. |class. |

|(4) Government should follow a laissez-faire policy. |Speaker C: Private property will cease to exist. The people will own |

| |the means of production. |

| |Speaker D: A favorable balance of trade should be maintained by the |

| |use of tariffs. |

| |7. Which two speakers represent Karl Marx’s ideas of communism? |

| |(1) A and B (3) B and D |

| |(2) B and C (4) C and D |

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Word Bank:

Adam Smith, Karl Marx, Free Market, Command, Private Property, Revolution, Dictatorship, Laissez Faire, Supply, Demand, Market, Supply and Demand, Friedrich Engels, Self Interest, Chains, Soviet Union

The Free Market

What is a market?

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Why do markets exist?

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Give examples of three different markets:

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Why do markets function efficiently?

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Define Self-interest:

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Give two examples of self-interest:

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Define economic competition:

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Give two examples of how competition benefits consumers:

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Therefore, a free market economy is an economic system based on voluntary exchanges in the market!

Define incentive. ______________________________________________________________________________

List two advantages of the free market:

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List two disadvantages of the free market: ____________________________________________________________________________________________________________________________________________________________

What is the greatest advantage of the free market? ____________________________________________________________________________________________________________________________________________________________

A Centrally Planned Economy

What was the first country to experience a communist revolution?

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When did that country experience a communist revolution?

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Is that country still communist today?

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Why?

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Who wrote The Communist Manifesto?

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Describe the society this book wanted to create?

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Remember the Three Key Economic Questions? List them:

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Who answers these questions in a centrally planned economy?

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Why?

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What goals are addressed in a centrally planned economy?

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Let’s Review:

In a centrally planned economy, who decides what goods will be produced?

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In a centrally planned economy, who decides how these goods will be produced?

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In a centrally planned economy, who decides who will get these goods?

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8: What should governments never do? __________________________________________________________________________________________________________

9: Why should governments never do this? __________________________________________________________________________________________________________

10: Define Laissez-faire. __________________________________________________________________________________________________________

11: Why does the baker bake bread? __________________________________________________________________________________________________________

12: What is the name of an economy that does not have government intervention? __________________________________________________________________________________________________________

13: What are the advantages and disadvantages of an economic system without government intervention? __________________________________________________________________________________________________________

Questions:

1- Who was Adam Smith? __________________________________

2: What book did he write? __________________________________

3: When was his book published? __________________________________

4: What is a market? __________________________________

5: What determines price in a market? __________________________________

6: What ensures the production of goods in a market? __________________________________

7: Who still studies Smith’s book? _________________

Adam Smith (1723-1790) was a Scottish philosopher. In 1776, he published An Inquiry into the Nature and Causes of the Wealth of Nations.

Examining economic freedom and markets, Smith wrote about the role of supply and demand in determining prices and the principles of self-interest and competition in ensuring the production of goods. Smith’s book is still studied by Economists today.

Smith strongly believed that governments should never interfere or regulate markets because markets ultimately fix themselves. The principles of supply, demand, self-interest, and competition fix markets. This idea that government should not intervene in a market is called Laissez-faire. It is a French term that means “let them do as they please.”

Quote:

“It is not from the benevolence of the butcher, the brewer, or the baker, that we expect our dinner, but from their regard to their own interest.” ~ Adam Smith

Karl Marx (1818-1883) was a philosopher. He co-wrote and published The Communist Manifesto with Friedrich Engels in 1848. According to Marx and Engels, capitalists exploited or mistreated workers. However, workers created the capitalists’ wealth and therefore, workers, not capitalists, should control the factors of production. Workers needed to unite and overthrow their capitalist overlords. Once the workers led a violent revolution, a dictatorship of the proletariat or workers would rule. The dictatorship would control all the factors of production. Private property would be abolished. All wealth would be shared equally. The dictatorship would make all economic decisions.

1- Who was Karl Marx? ____________________________________

2- What did he write? ____________________________________

3- Who was Marx’s coauthor? ____________________________________

4- When did Marx publish The Communist Manifesto? ____________________________________

5- Who were the proletariat? ____________________________________

6- Who exploited the proletariat? ____________________________________

7- How were the proletariat exploited? ____________________________________

The last lines of The Communist Manifesto:

“Let the ruling classes tremble at a communist revolution. The proletarians have nothing to lose but their chains. They have a world to win.

Proletarians of all countries unite!”

8- According to Marx, what did workers need to do? _____________________________________________

9- What would happen after the workers’ actions? __________________________________________________________________________________________

10- What is the name given to an economy where the government makes all economic decisions? __________________________________________________________________________________________

11- According to Marx, who should own the factors of production? __________________________________________________________________________________________

12- According to Marx, how is wealth distributed in a communist society? __________________________________________________________________________________________

13- According to Marx, why should workers unite? _____________________________________________

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