1. Philosopher(s) and year Key Ideas Driving ForceNatural or Man made Who determines key economic principles? The People or the Government? Factors of ProductionPriceSupply/Demand/OutputWages Views on incentive, consequences, goals Overall economic policyViews on ProfitViews on competitionFreedomInventions and improvementsGovernment influence

2. Philosopher(s) and year Key Ideas Driving ForceNatural or Man made Who determines key economic principles? The Private Individuals or the Government (small group of public officials)? Factors of ProductionPriceSupply/Demand/OutputWages Views on incentive, consequences, goals Overall economic policyViews on ProfitViews on competitionFreedomInventions and improvementsGovernment influence Adam Smith – 1776 Wealth of NationsKarl Marx- 1848 Communist Manifesto Laissez-faire, Econ liberty= Econ progress, the invisible hand – self interest Class struggle, haves vs the have not, redistribution of wealth Profit, price, and competition (invisible hand) self interest Central Planners Natural laws of economicsMan-made, “fairness” People make decisions based on scarcity and alternative uses – mutual exchange People make decisions based on scarcity and alternative uses People make decisions based on scarcity and alternative uses – mutual exchange People make decisions based on scarcity and alternative uses Government makes decisions based on scarcity and alternative uses Self-interest leads to collective benefits Policy based on man made goals and quotas Encouraged- driving force Discouraged Those who make profit did so by taking advantage of others Encouraged leads to advancement Discouraged- shared resources Economic freedom leads to progress Economic freedom leads abuses Incentive for profit leads to improvements Lack of incentive stalls progress in the private sector Hands off- let scarcity drive price, outputs, and the factors of production (limited)- don’t benefit special interest Hands on- the system makes the decisions

3. Was Capitalism fair or unfair? Was Communism Fair or unfair? Which system is more likely to lead to improvements? Which system is more natural? Explain Which system is more of a man made creation? Explain Which groups of people would Communism most appeal to and why? What do we have in America? Examples: