1. Question 1
What is an economic policy of letting owners of industry and business set working conditions without interference?
A. Capitalism
B. Laissez faire
C. Utilitarianism
D. Socialism

2. Question 2
Which philosopher felt that government should not interfere with business and the economy would prosper?
A. Karl Marx
B. Jane Addams
C. Andrew Carnegie
D. Adam Smith

3. Question 3
Which of the following is not considered part of Adam Smith’s natural laws of economics?
A. The law of the dollar
B. The law of self interest
C. The law of competition
D. The law of supply & demand

4. Question 4
What is an economic system in which the factors of production are privately owned and money is invested in business ventures to make a profit?
A. Capitalism
B. Laissez faire
C. Utilitarianism
D. Socialism

5. Question 5
Who believed that without war and disease most people would be poor?
A. David Ricardo
B. Adam Smith
C. Karl Marx
D. Thomas Malthus

6. Philosophers Adam Smith Laissez-faire Economics
French economic philosophers
Believed that government should not interfere with business and the economy would prosper.
Smith believed economic liberty guaranteed economic progress.

7. Smith’s Arguments 3 Natural Laws of Economics
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

8. Smith’s Ideas
Supported by British economists Thomas Malthus and David Ricardo
Formation of laissez-faire capitalism
What is Capitalism?
An economic system in which the factors of production are privately owned and money is invested in business ventures to make a profit

9. Malthus Argument Thomas malthus
Wrote An Essay on the Principle of Population
Population has a tendency to increase more quickly than the available food supply.
Without wars, disease and epidemics most people would be poor

10. Ricardo Argument David ricardo
Pinciples of Political Economy & Taxation
Poor will continue to be poor
Believed in a market system
Wages would be lower as population increases

11. Question 1
What is an economic policy of letting owners of industry and business set working conditions without interference?
A. Capitalism
B. Laissez faire
C. Utilitarianism
D. Socialism

12. Question 2
Which philosopher felt that government should not interfere with business and the economy would prosper?
A. Karl Marx
B. Jane Addams
C. Andrew Carnegie
D. Adam Smith

13. Question 3
Which of the following is not considered part of Adam Smith’s natural laws of economics?
A. The law of the dollar
B. The law of self interest
C. The law of competition
D. The law of supply & demand

14. Question 4
What is an economic system in which the factors of production are privately owned and money is invested in business ventures to make a profit?
A. Capitalism
B. Laissez faire
C. Utilitarianism
D. Socialism

15. Question 5
Who believed that without war and disease most people would be poor?
A. David Ricardo
B. Adam Smith
C. Karl Marx
D. Thomas Malthus