Adam Smith VS Karl Marx

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.

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

Karl Marx and Friedrich Engels encouraged workers to improve their lives by

• electing union representatives

• participating in local government

• overthrowing the capitalist system

• demanding pensions and disability insurance

Scottish Professor who believed that the successful market economy is based on competition.

• Adam Smith

• Fredrich Engels

• Karl Marx

• Robespierre

The capitalist class who own most of society's wealth and means of production.

• Adam Smith
• Bourgeoisie
• Capital
• Capitalism

Wealth in the form of money or other assets owned by a person or organization.

• Adam Smith
• Bourgeoisie
• Capital
• Capitalism