1. Warm Up (use the graph to answer the questions)
What is the purpose of the production possibilities curve?
What is the opportunity cost in grain when moving from 9 units of wine to 12 units?
How does an economy achieve point b?
What might cause the economy to move to point A?

2. Adam Smith vs. Karl Marx Economics Standard 12.11.1
Learning Goal: I will compare and contrast Adam Smith and Karl Marx by qualifying their characteristics.

3. Find the Fiction
Directions: Write down 2 true facts about you and one false fact. Then you teammates guess which one is false.
Example:
I have met Justin Timberlake.
I went to the MTV Movie Awards.
I have been on stage with Rascal Flats.

4. I. Adam Smith (free market)
The Wealth of Nations, 1776
Father of capitalism [free market]
Wealth = production of goods and services
Laissez-faire [gov’t stays out]
Invisible hand [profit motive]

5. Adam Smith

6. II. Karl Marx (command) Communist Manifesto (1848)
History is shaped by economics
Class conflict between rich and poor
Workers will rise up in violent revolution
Property & businesses are owned by the gov’t
Equality of wealth and a classless society emerges

7. Karl Marx and Friedrich Engels’ Communist Manifesto, 1848

8. Karl Marx

9. Russia’s Lenin

10. Find the Fiction
Directions: Which of the following statements is not true about Adam Smith.
He believed in equality of wealth.
He is considered the Father of Capitalism.
He believes in the “invisible hand.”

11. Find the Fiction
Directions: Which of the following statements is not true about Karl Marx.
He believed wealth is the production of goods and services.
He wrote the Communist Manifesto.
He believed property and businesses should be owned by the government.