GENERAL KNOWLEDGE

Detailed explanation-1: -Adam Smith was a philosopher and economic theorist born in Scotland in 1723. He’s known primarily for his groundbreaking 1776 book on economics called An Inquiry into the Nature and Causes of the Wealth of Nations. Smith introduced the concept that free trade would benefit individuals and society as a whole.

Detailed explanation-2: -Adam Smith’s Wealth of Nations is a foundational treatise in economic thought, but one that is as much philosophical in character as it is economic. It extolls the benefits of the division of labor, competition, and trade.

Detailed explanation-3: -Smith’s free-market philosophy was expressed in his notion of ‘the invisible hand’: the idea that an economy can regulate itself through the actions of individuals who are seeking only their own financial gain. This idea has come to be synonymous with capitalism and laissez-faire economics.

Detailed explanation-4: -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.