1. Adam Smith & Karl Marx & John Keynes Three men who shaped modern Economics

2. Warm Up Read pages 716 and 717 in your book… 1.What is another name for capitalism? 2. In a capitalist economy, who makes the decisions? 3. What is another name for a controlled economy? 4. What is socialism?

3. Vocabulary Capitalism: form of economy where production is controlled by private citizens Free enterprise/market: an economy where there is little or no government interference Invisible hand: Adam Smiths term for the force that controls the economy

4. Patent: a temporary government protection on an invention (design). Copyright: a permanent government protection on an idea.

5. Adam Smith Father of ECONOMICS Book: The Wealth of Nations Economic Theory: “Laissez-Faire”-”hands off” – Gov’t should stay out. The “Invisible hand” will set the prices and quantity Competition & profit is good! Economic Goal: ECONOMIC FREEDOM

6. Karl Marx Father or Communism Book: Communist Manifesto Economic Theory: Command economy is the best Decisions made by central planner (gov’t) Economic Goal: ECONOMIC EQUALITY

7. John Keynes Father of Keynesian Theory Gov’t should stay out of the economy (market) unless there is a problem. Problems? Gov’t should step in to fix it (command). Economic Goal: ECONOMIC GROWTH & STABILITY

8. Keynes believed that the government should stay out of the economy (market) unless there is a problem. If so the government should step in to fix it (command).

9. Benefits of Competition in a Market Economy Competition creates… cheaper prices better quality greater variety

10. Quick Write – 2 minutes: If competition is good, and patents & copyrights limit competition, why does the government allow them? Patents & copyrights protect the entrepreneur and promote the invention of new technologies and ideas.

11. –http://www.youtube.com/watch?v=Ef24ZsNlxD4&feature=related Pro Capitalism - monopoly manhttp://www.youtube.com/watch?v=Ef24ZsNlxD4&feature=related Write: What are two main points of this video? –http://www.youtube.com/user/LearnLiberty?v=KGPa5Ob- 5Ps&feature=pyv&ad=8739327609&kw=capitalism Harvard guy on capitalismhttp://www.youtube.com/user/LearnLiberty?v=KGPa5Ob- 5Ps&feature=pyv&ad=8739327609&kw=capitalism Write: What are his 3 big arguments? –http://www.youtube.com/watch?v=JeROnVUADj0 Capitalism: A Love Story (Trailer)http://www.youtube.com/watch?v=JeROnVUADj0 Write: What do you think is Michael Moore’s main point? –http://www.youtube.com/watch?v=Tv2DYoMNZdU&feature=related 1% vs 99%http://www.youtube.com/watch?v=Tv2DYoMNZdU&feature=related –Write: Write: Are these statistics important? Why or why not? Should we try to change this? How? Why?