Capitalism vs Communism

Adam Smith believed in laissez-faire, by which he meant that

• the population would outpace the supply of food

• the state should monitor the economy and impose regulations to keep it healthy

• the assets of the rich should be taken

• the government should not regulate the economy

How is laissez-faire economics more productive than an economy controlled by a government?

• laissez-faire creates an economy which is regulated by the government in order to create ideal working conditions

• laissez-faire economics creates a more nationalistic economy in which local production is always preferred

• laissez-faire economics creates competition which results in improved working conditions, higher wages, and healthcare benefits

• laissez-faire economics creates competition which leads to innovation, greater profits for investors, and lower product prices

According to Karl Marx and the Communist Manifesto,

• social classes have always gotten along in history

• the problems in society would be resolved peacefully

• private property is a sacred right that people should enjoy

• the proletariat would overthrow the bourgeoisie in a violent revolution

Which is generally a characteristic of a communist economy?

• entrepreneurs sell shares in their companies to the government

• investment is encouraged by the promise of large profits

• the role of government in the economy is restricted by law

• government agencies are involved in production planning

Which statement is supported by the ideas of Karl Marx?

• private ownership of businesses helps workers

• countries should benefit from the wealth of their colonies

• industrial capitalism allows workers and employers to work together for a common purpose

• industrialization benefits the wealthy factory owners and exploits the poor factory workers