Adam Smith and Karl Marx

Which idea is most closely associated with laissez faire economics?

• communes

• trade unionism

• subsistence agriculture

• free trade

Adam Smith would most likely agree with which statement?

• Revolution is the only solution to economic problems.

• Five-year plans are necessary in order to industrialize.

• All nations would benefit from an agricultural economy.

• Government should follow a laissez-faire policy.

Laissez-faire capitalism as attributed to Adam Smith called for

• heavy taxation of manufacturers

• strict government control of the economy

• minimal government involvement in the economy

• government investments in major industries

Which characteristic is associated with an economy based on the principles of laissez-faire?

• prices based on supply and demand

• production quotas established by the central government

• distribution of goods determined by the customs of a traditional society

• some goods exchanged for other goods of equal value

Adam Smith’s Wealth of Nations stressed the importance of

• tradition

• supply and demand

• large corporations

• government ownership

What is a key principle of a market economy?

• The means of production are controlled by the state.

• Supply and demand determine production and price.

• Employment opportunities are determined by social class.

• Businesses are owned by the people collectively.

Which heading best completes the partial outline below?

I. ___________________________________

A. Market system

B. Profit incentive

C. Entrepreneurs

• Forms of Government

• Characteristics of Capitalism

• Structure of the Guild System

• Elements of Culture

During the 1800s, the writings of Marx, Engels, and Dickens focused attention on the problems faced by

• factory owners

• investment bankers

• farm laborers

• industrial workers

“. . . They [the Communists] openly declare that their ends can be attained [achieved] only by the forcible overthrow of all existing social conditions. Let the ruling classes tremble at a Communist revolution. The proletarians have nothing to lose but their chains. They have a world to win. Working men of all countries, unite!”

— Friederich Engels and Karl Marx, Communist Manifesto, 1848 from the NYS Global History and Geography Regents Exam, August 2002.

These views, expressed by Engels and Marx, were developed in reaction to the

• unification of Germany

• Commercial Revolution

• Congress of Vienna

• Industrial Revolution

Where did Karl Marx predict a revolution of the proletariat would occur first?

• industrial Europe

• independent Latin America

• colonial Africa

• agricultural Russia