ECONOMICS
PRODUCTIVITY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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It is based on religion.
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It is based on self-interest.
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The founders were more important people.
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The founders were smarter.
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Detailed explanation-1: -Adam Smith and the Wealth of Nations Scottish economist Adam Smith was the leading figure of the classical theory of growth. Smith wrote that the division of labor among workers into more specialized tasks was the driver of growth in the transition to an industrial, capitalist economy.
Detailed explanation-2: -Smith argued that the free-market system along with free trade would produce true national wealth, benefiting all social classes, not just the privileged few. In a major section of The Wealth of Nations, Smith attacked mercantilist trade practices.
Detailed explanation-3: -Adam Smith described self-interest and competition in a market economy as the “invisible hand” that guides the economy. This episode of the Economic Lowdown Podcast Series explains these concepts and their importance to our understanding of the economic system.