ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -In 1776, Adam Smith published The Wealth of Nations, probably the most influential book on market economics ever written.

Detailed explanation-2: -Adam Smith is often identified as the father of modern capitalism.

Detailed explanation-3: -Smith rejected government interference in market activities. He believed that a government’s three functions should be to protect national borders, enforce civil law, and engage in public works (e.g., education).

Detailed explanation-4: -Smith believed that economic development was best fostered in an environment of free competition that operated in accordance with universal “natural laws.” Because Smith’s was the most systematic and comprehensive study of economics up until that time, his economic thinking became the basis for classical economics.

Detailed explanation-5: -The Wealth of Nations is a profoundly influential work in the study of economics and examines exactly how nations become wealthy. Adam Smith advocates that by allowing individuals to freely pursue their own self-interest in a free market, without government regulation, nations will prosper.