ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The term “invisible hand” first appeared in Adam Smith’s famous work, The Wealth of Nations, to describe how free markets can incentivize individuals, acting in their own self-interest, to produce what is societally necessary.

Detailed explanation-2: -Competition is the regulator of economic activity. Together they form what Adam Smith called the invisible hand, which guides resources to their most valued use.

Detailed explanation-3: -What Were Adam Smith’s 3 Laws of Economics? The law of self-interest, the law of competition, and the law of supply and demand were the three laws of economics written by Adam Smith.

Detailed explanation-4: -As a reaction to the common policy of protecting national markets and merchants, what came to be known as mercantilism-nowadays often referred to as “cronyism” or “crony capitalism"-Smith laid the foundations of classical free market economic theory.

Detailed explanation-5: -Dome (1994) states that Smith’s theory of economic growth consists of a rise in the productivity of labour by means of the division of labour, and an increase in productive labour by way of capital accumulation.