2. 1. Write a letter as if you are Adam Smith to Karl Marx, or Karl Marx to Adam Smith. Explain your ideas on economics (capitalism vs. socialism) and why they are better. Your response should be in a letter format, including a greeting, body, and farewell. It must contain at least one paragraph. See pages 446-450 and 483-486.

[Type your letter here]

Amongst the most influential and prominent economists of the last few centuries, Adam  Smith and Karl Marx, are noted for their distinct theoretical contributions. In his watershed  Inquiry into the Nature and Causes of the Wealth of Nations, Adam Smith that each  individual would try to maximize his own benefit. In doing so, consumers would only pay  as much as or less than they would value the benefit derived from a good, and producers  would only sell for as much as or higher than they would have spent on producing a good.  In his idealistic economy, there would be no surplus or deficit supply or demand; markets  would always be in equilibrium, and the benefits to consumers and producers alike would  be maximized. There would be a limited role for the government in such an economic  system.