1. Alternative Warm Up (if you were absent)
Answers must be 3-5 bullets or sentences.
Consider:
“The first lesson of economics is scarcity: there is never enough of anything to fully satisfy all those who want it. The first lesson of politics is to disregard the first lesson of economics.” Thomas Sowell
Answer these: Why would a politician ignore the reality of scarcity? What would he/she have to gain? Who is that good for in the long run?

2. Warm Up
Take your warm up paper with you on a “Museum Walk.” Study each table’s newpaper.
1) Note any words that you find offensive and write down what you think is a better word as a substitute.
2) Note any opinions that you don’t like and suggest a different topic that you would like to hear about in 1942.
Be ready to discuss your findings with the class.

3. Economic Theories

5. The Role of Economic Systems
Economics: Finding the best way to make limited resources satisfy people’s unlimited wants.
Basic Economic Questions to address:
What to produce?
How to produce?
And for whom to produce?
Means of Production
The facilities (ex: factory) and resources (ex: steel, rubber) for producing goods (ex: a car).

6. Adam Smith: Capitalism/Free Market
Wrote: “The Wealth of Nations”
Advocate of “Free trade”
Laissez- faire: little or no government intervention
Competition will drive the economy
Freedom of choice & individual incentive

7. Free Enterprise (AKA Capitalism)
Free Enterprise- freedom of private business/ ownership w/ minimal government regulation
Law of supply and demand (the invisible hand)
The voluntary decisions of people as they purchase (“the market”) decides the answers to the three economic questions.

8. So, Greed is Good?

9. Socialism
Socialism- The state owns means of production, determines resources, distribution of wages & products, provides social services.
Democratic Socialism- democratic in politics; but distribution of economic goods is determined by state (Sweden, Denmark, Norway)

10. Socialism

11. Socialism—Private ownership=Communism
Karl Marx- Communist Manisfesto
Proletariat
Bourgeoisie
Class Struggle and violently overthrowing the bourgeoisie (Hegel)
Communism ensues
Marx on religion: it is “the opiate of the masses…”

12. Command Economy (an essential feature of Communism)
Government planners decide the 3 economic questions
What to produce?
How to produce?
And for whom to produce?

13. Capitalism, Socialism, and Communism compared

14. Which is Capitalist or Communist? How do you know based on this picture?

15. Mixed Economy
Contains both market (aka capitalist) and government (aka socialist) control.
Capitalism and Socialism
US: freedom of economic decisions & regulations

16. Where is the U.S.A. in all this?
The U.S.’s economic system is somewhere around here…..

17. Imagine
Read John Lennon’s “Imagine” and follow the directions on that sheet. Please put your answers on your warm up sheet.

18. All summaries must be on the same page with each entry dated.
Summary
All summaries must be on the same page with each entry dated.
What is capitalism?
What is communism?
Which economic system does the US follow?
Write four or more sentences or bullets (must be complete thoughts) summarizing your notes up to this point.