1. Chapter 2 Section 4 Socialism and Capitalism AND Production Possibilities Curve from Chapter 1

2. YouTube Clip of the Day

4. Socialism  Government owns the major factors of production AND attempts to manage output and distribution of goods. Examples – North Korea and Cuba (best examples)

5. Karl Marx  Wrote the Communist Manifesto  Father of modern socialism  Capitalists (Business owners) exploited the proletariat (working class) and used them unfairly.  Believed proletariat would eventually rise up against the capitalists.

7. Communism  Idealized system with no need for a government. Socialism and Communism as Marx explained it are NOTHING like what they have become today. Marx believed the proletariat would come to control all of the factors of production.

8. Socialism ≠ Communism  Socialism = Economic System  Communism = Form of Gov’t

9. Supporters of Capitalism  Place high value of personal freedom and initiative.  High rate of growth in capitalist economies (See Picture)

10. Critics of Capitalism  Uneven Distribution of Wealth and can be unethical Controversial film director Michael Moore recently created a film called Capitalism: A Love Story.

11. Continued From Chapter 1

12. Resources available: Your business has between 10 pieces of paper to produce either paper airplanes or paper footballs. Your firm can produce 1 plane or 2 footballs with each sheet. What are your production possibilities? AirplanesFootballs A B C D E F G

13. Production Possibilities Curve  Graph showing the maximum combinations of goods and services that can be produced from a fixed amount of resources in a given period of time.