Adam Smith

Where was Adam Smith born?

• Philadelphia

• Paris

• Scotland

What is Specialization?

• When a tasks can be broken up into smaller parts. Allowing many people to be very productive working together

• When one person learns every step of the production process, and takes a very long time.

• When people don’t really care what anyone else does, as long as it gets done on time.

What is a problem with Specialization?

• People get rich too fast

• People don’t work together anyway

• People feel like their jobs lose meaning

What is an example of a product requiring specialized labor?

• An old fashioned wooden chair, made by hand by a carpenter named Rusty.

• An iPhone designed in California, assembled in Asia using materials mined in Africa. 

What is Surplus wealth?

• Wealth that is wasted when you buy too much supply and there is low demand

• Wealth created by taxing poor people

• Wealth created by profiting off of Luxury goods that could be used to help the poor in society

What is an example of Surplus Wealth being used correctly, according to Smith?

• The rich hoarding all of their extra money made from selling luxury goods.

• The rich preferring to not spend their money because they live in a spartan society that doesn’t promote luxury goods.

• The rich providing hospitals or schools to improve the lives of society’s poor

What is a problem with raising taxes, according to Smith?

• The rich love to pay higher taxes

• The rich will just avoid them anyway. 

• The rich don’t have an opinion on taxes

What is a better way to reward the rich for using their surplus wealth on the poor?

• Give them honors

• Fight wars against them

• Ignore them

According to Smith, who is ultimately responsible for the evils that corporations can sometimes do?

• The lawmakers, who raise ridiculously high taxes

• The consumers, who buy into the system

• The corporations themselves, who don’t know how to make money

Who wrote the book “Wealth of Nations”?

• Karl Marx

• Adam Smith