activity #4: new ways of thinking pgs. 184-188
1. list 3 ideas of adam smith.
2. what is socialism?
3. what is communism?
4. list 5 ideas of karl marx’s theory of communism.
summary focus question: what new ideas about economics and society were fostered as a result of the industrial revolution?

Question

Accepted Answer

### Sub - Question 1: List 3 ideas of Adam Smith.
# Brief Explanations:
Adam Smith is a key figure in economics. His ideas include the "invisible hand" concept, where self - interested individuals in a free market unintentionally promote the general good; the division of labor, which increases productivity by breaking down tasks into specialized parts (e.g., in a pin factory); and the idea that free trade and minimal government intervention in the economy (laissez - faire) are beneficial for economic growth.
# Answer:
1. Invisible hand: Self - interested actions in free market promote public good.
2. Division of labor: Specialization of tasks boosts productivity.
3. Laissez - faire: Minimal government intervention in economy is good.

### Sub - Question 2: What is socialism?
# Brief Explanations:
Socialism is an economic and political system. In it, the means of production (like factories, land) are owned either by the state or by the community as a whole. The goal is to reduce economic inequality, ensure social welfare (such as through universal healthcare, education), and have a more equitable distribution of wealth. Production and distribution are often planned to meet the needs of the people rather than for private profit alone.
# Answer:
Socialism is a system where means of production are owned by state/community, aiming for economic equality, social welfare, and planned production/distribution to meet people's needs.

### Sub - Question 3: What is communism?
# Brief Explanations:
Communism is a more advanced form of socialism (in Marxist theory). It is a stateless, classless society where all property is commonly owned. There is no need for money as goods and services are distributed according to people's needs ("from each according to his ability, to each according to his needs"). It aims to eliminate social classes, exploitation, and the state apparatus as it becomes unnecessary.
# Answer:
Communism is a stateless, classless society with common property ownership, goods/services distributed by need, and no exploitation or state.

### Sub - Question 4: List 5 ideas of Karl Marx’s theory of communism.
# Brief Explanations:
Karl Marx's communist theory has several key ideas. 1. Historical materialism: History is driven by class struggle and changes in the mode of production (e.g., feudalism to capitalism to communism). 2. Class struggle: In capitalist society, the bourgeoisie (owners of capital) exploit the proletariat (workers), and this struggle will lead to the overthrow of capitalism. 3. Surplus value: Workers are paid less than the value they create, and this surplus is taken by capitalists. 4. Proletarian revolution: The working class will rise up, seize the means of production, and establish a socialist state (a transition to communism). 5. Withering away of the state: In a communist society, the state (which was an instrument of class rule) will no longer be needed and will disappear.
# Answer:
1. Historical materialism: History driven by class struggle and production mode changes.
2. Class struggle: Bourgeoisie exploit proletariat, leading to capitalism's downfall.
3. Surplus value: Workers' created value exceeds their wages, taken by capitalists.
4. Proletarian revolution: Workers seize production means, establish socialist state.
5. Withering away of state: State disappears in communist society.

### Summary Focus Question: What new ideas about economics and society were fostered as a result of the Industrial Revolution?
# Brief Explanations:
The Industrial Revolution led to new economic and social ideas. Economically, ideas like Adam Smith's free - market capitalism (laissez - faire, division of labor) emerged as industrial production grew. Socially, socialist and communist ideas (from Marx, etc.) developed in response to the exploitation of workers in factories, poor working conditions, and economic inequality. Also, ideas about social welfare (to address the hardships of workers) and the role of the state in economic and social affairs (either to regulate capitalism or to plan the economy as in socialism) were fostered.
# Answer:
New economic ideas: Free - market capitalism (laissez - faire, division of labor) by Adam Smith. New social ideas: Socialism (state/community ownership, welfare) and communism (classless, common ownership) by Marx, ideas about social welfare and state's economic/social role to address industrial - era problems.

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Sub - Question 1: List 3 ideas of Adam Smith.

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Sub - Question 2: What is socialism?