




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





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





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





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





Who believed that without war and
disease most people would be poor?
A. David Ricardo
B. Adam Smith
C. Karl Marx
D. Thomas Malthus
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.

1. The law of self interest


2. The law of competition


People work for their own good
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

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
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
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





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





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





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





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





Who believed that without war and
disease most people would be poor?
A. David Ricardo
B. Adam Smith
C. Karl Marx
D. Thomas Malthus