Students post inferences and questions about a free market economy. Then they examine key concepts related to this economic system. Next they analyze how the Industrial Revolution gave rise to capitalism and they discuss Adam Smith’s ideas of laissez-faire economics. Finally they read an excerpt from Smith’s The Wealth of Nations and prepare a brief presentation on the reading.
Students are introduced to the terms free enterprise system, free market economy, and capitalism, and to the focus of the experience. They then contribute to a shared class chart by posting either an inference about a characteristic of the U.S. free market economy or a question they have about how the system works.
Teacher MovesPresent the lesson overview and objectives. Accept all student ideas and questions on the chart without correcting misconceptions at this stage, and, if time allows, invite students to revisit the chart after completing the experience.
Students read background text explaining the basic features and five main principles of a free enterprise system, then read What Is a Free Enterprise System? to see how these ideas operate in the U.S. economy. They complete a graphic organizer by listing and defining each of the five principles. Next, they read Free Market Definition & Impact on the Economy to deepen their understanding of how free markets function and complete a set of fill-in-the-blank sentences using information from the article.
Teacher MovesSupport students in distinguishing between examples and definitions as they complete the organizer, prompting them to derive clear definitions from their examples. If needed, guide a brief class discussion to complete or clarify the chart before moving students into small groups for the next scenes.
Working in small groups, students read about how the Industrial Revolution shifted economies from mercantilism to free enterprise and capitalism, including how industrialization and factory production encouraged competition, innovation, and consumer choice. They learn about Adam Smith and his influence on capitalism, then watch Who Is Adam Smith? to explore his ideas of laissez-faire economics, the invisible hand, division of labor, GDP, and limited government roles. In their groups, they discuss these concepts and collaboratively write a paragraph summarizing Smith’s key ideas and how they relate to capitalism.
Teacher MovesOptionally read the text aloud and discuss vocabulary and concepts to ensure comprehension. Facilitate discussion of Smith’s key ideas, using the bullet points to structure conversation. After groups compose their summaries, invite groups to share and compare their explanations, and prompt students to identify which of Smith’s ideas reflect core elements of capitalism such as competition, efficient resource use, and free market equilibrium.
Students are assigned an excerpt from Adam Smith’s The Wealth of Nations, using Division of Labor and the Wealth of Nations as their reading. Individually, they read their assigned passage, prepare responses to accompanying discussion questions for a small-group or whole-class presentation, and take notes in the provided space to organize their ideas.
Teacher MovesDecide how to structure the readings and presentations (different excerpts per group or per group member) and clarify expectations for discussion and sharing. You may choose to substitute or supplement with the interactive pin factory exploration from the Student Pack.
Students complete the exit quiz by answering all the questions.
Teacher MovesFacilitate the assessment and use student data to evaluate understanding, address misconceptions, and identify areas for growth.
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