WORLD HISTORY

Detailed explanation-1: -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-2: -It was not by gold or by silver, but by labour, that all wealth of the world was originally purchased. ‘ ‘Wherever there is great property there is great inequality. For one very rich man, there must be at least five hundred poor, and the affluence of the few supposes the indigence of the many.

Detailed explanation-3: -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-4: -The main reason why economist opposes the strategies that restrict trade among countries is the prosperity that a nation will gain through comparative advantage. This, in turn, means a restriction on trade will hurt the sentiments of trading nations.