1. ECONOMIC THEORY Influence of Enlightenment Thinking Adam Smith ‘The Wealth of Nations’ Objective: Explain how the ideas from the Enlightenment changed economic systems

2. Applied natural law to economics Land source of nation’s wealth Laissez-faire economy- meaning let it alone. The government has little or no control over businesses. NEW ECONOMIC THEORIES

3. ‘ The Wealth of Nations’ Supported the theory of laissez-faire economics Believed in a free-market economy, supply and demand would determine prices and other economic decisions. He also believed that while governments should not interfere in economics, they did have a duty to protect citizens and provide public works for the betterment of society. ADAM SMITH

4. Do you agree with Adam Smith’s ideas? Should government have little or no control over businesses? Does supply and demand work? Explain why or why not? PARTNER QUESTION

5. Which concept is an application of natural law to the government's role in the economic lives of its citizens? A. Free markets based on supply and demand B. Government control to achieve a favorable balance of trade C. Agriculture based on tenant farming and serfdom D. Lower taxes on the most privileged groups in society REMIND101 QUESTION