Just answer the following questions please.

1. Why do economists think that maximizing is rational even if it makes us act in bad ways?

3. How did folks before Adam Smith see the world differently than Smith did? Why did

Smith believes in the power of the free market?

4. Why is competition essential to Adam Smith's theory?

5. What are the essential elements of capitalism and socialism? What was Marx's critique

of capitalism? What do modern economists think about socialist economies?

6. Why do most economists like capitalism? What are the concerns with modern

Capitalism?

7. Explain why the production of public goods, according to most economists, will not work

if left to the market.

8. What was Adam Smith's view of government? What other things do modern economists

debate whether they should be included in the government's role?