SECTION 4 ASSESSMENT
TERMS & NAMES 1.
For each term or name, write a sentence explaining its significance. • laissez faire •
Adam Smith • capitalism • utilitarianism • socialism • Karl Marx • communism • union •
strike
laissez faire
No one can tell you what to do.
Adam smith
Adam smith. He believed in capitalism and was the father of economics.
Capitalism
Enough goods would be produced at the lowest possible price to meet demand in a market
economy.
Utilitarianism
Judging ideas institutions based on their usefulness.
Socialism
To benefit all
Karl Marx
Father of communism and he wrote the communist manifesto.
Communism
The government owns everything.
Union
Labor associations of workers.
Strike
Refusal to work until demands are met.
USING YOUR NOTES 2.
What characteristics do capitalism and socialism share?
Capitalism is more freedom for the people and less government while socialism is more
government control and intervening. They both share the fact that they wanted better
conditions for the people. They both want a better society.
MAIN IDEAS
3.What were Adam Smith’s three natural laws of economics?
Adam Smith natural laws of economics were:
1. The law of self-interest: people work for their own good
2. The law of competition: competition forces people to make a better product
3. The law of supply and demand: enough goods would be produced at the lowest possible
price to meet demand in a market economy
4. What kind of society did early socialists want?
Socialists wanted a society that was owned by the public to help and property and promote
equality among everyone.
Group members: Giovanna Cali, Mirely Paguay, Fernando Lozada, Melissa Ramos,
Scarlet Peñaloza
