ADAM smith: capitalism
Reading Comprehension
LCL338 Inglés Avanzado 2
how cou you explain this joke?
Gather in pairs to read about sam smith and capitalism. Be ready to answer any of the following questions
O1
Questions
1. Who was Adam Smith?2. What was Smith’s contribution to history?3. What did the Law of Supply and Demand do?4. How did this law work?5. Give your own example of Supply and Demand in action.6. What is the idea behind the Law of Competition?7. What did Smith say happened when there was no competition?8. What is behind the Law of Self-Interest?9.Why does this law help ensure competition in the economy?10. Define: Means of Production –11. Why is capitalism known as a free market economy?12. What is laissez-faire capitalism?13. What are the advantages and disadvantages of capitalism?
Answer key
1. A professor of economics at Scotland’s Glasgow University
2. His work, Wealth of Nations (1776) is considered the first work of modern economics. His work became the basis of capitalism.
Comparison
3. Smith believed that supply and demandworked together to set prices.
4. He argued that if demand were high, and ifsupply was limited, then the price would go up. Likewise, if there were a large supply, and limited demand, the price would go down
5. Answers will vary. A good example is always that hot toy at Christmas time (THE toy varies from year to year), or video gaming platforms. These are purchased at one price, then placed on ebay for a higher price because they are scarce and in high demand.
6. Smith believed that the competition to create products yielded a better quality and a cheaper priced product for consumers.
Comparison
7. If there were no competition in the creationof a specific product, there would be no reason to focus on creating a quality product. Price could remain high, regardless of quality, because there would be no substitutes. The one company creating the product would have a monopoly and could charge whatever they wanted.
8. Also known as “profit motive”, and it suggests that people act in their own financialbest interest.
9. People start their own businesses because they seek profits for themselves. They develop businesses to meet a need, and this ensured that there would be ample competition in the market place.
10. all the businesses, agriculture, transportation & communication systems
Comparison
11. Because private citizens own the Means ofProduction and compete for profits without restriction.
12. Laissez-faire was the idea that governmentshould not interfere with the economy.
13. A capitalist economy typically yields a huge number of products and a wide variety of prices. It also is very consumer-oriented, or focused on the needs of the consumer. Unregulated capitalism (laissez-faire) creates terrible greed, selfishness and abuse.
thanks
LCL338 Adam SMITH - CAPITALISM
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Created on September 4, 2023
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Transcript
ADAM smith: capitalism
Reading Comprehension
LCL338 Inglés Avanzado 2
how cou you explain this joke?
Gather in pairs to read about sam smith and capitalism. Be ready to answer any of the following questions
O1
Questions
1. Who was Adam Smith?2. What was Smith’s contribution to history?3. What did the Law of Supply and Demand do?4. How did this law work?5. Give your own example of Supply and Demand in action.6. What is the idea behind the Law of Competition?7. What did Smith say happened when there was no competition?8. What is behind the Law of Self-Interest?9.Why does this law help ensure competition in the economy?10. Define: Means of Production –11. Why is capitalism known as a free market economy?12. What is laissez-faire capitalism?13. What are the advantages and disadvantages of capitalism?
Answer key
1. A professor of economics at Scotland’s Glasgow University
2. His work, Wealth of Nations (1776) is considered the first work of modern economics. His work became the basis of capitalism.
Comparison
3. Smith believed that supply and demandworked together to set prices.
4. He argued that if demand were high, and ifsupply was limited, then the price would go up. Likewise, if there were a large supply, and limited demand, the price would go down
5. Answers will vary. A good example is always that hot toy at Christmas time (THE toy varies from year to year), or video gaming platforms. These are purchased at one price, then placed on ebay for a higher price because they are scarce and in high demand.
6. Smith believed that the competition to create products yielded a better quality and a cheaper priced product for consumers.
Comparison
7. If there were no competition in the creationof a specific product, there would be no reason to focus on creating a quality product. Price could remain high, regardless of quality, because there would be no substitutes. The one company creating the product would have a monopoly and could charge whatever they wanted.
8. Also known as “profit motive”, and it suggests that people act in their own financialbest interest.
9. People start their own businesses because they seek profits for themselves. They develop businesses to meet a need, and this ensured that there would be ample competition in the market place.
10. all the businesses, agriculture, transportation & communication systems
Comparison
11. Because private citizens own the Means ofProduction and compete for profits without restriction.
12. Laissez-faire was the idea that governmentshould not interfere with the economy.
13. A capitalist economy typically yields a huge number of products and a wide variety of prices. It also is very consumer-oriented, or focused on the needs of the consumer. Unregulated capitalism (laissez-faire) creates terrible greed, selfishness and abuse.
thanks