WORLD HISTORY

Detailed explanation-1: -Adam Smith was an 18th-century Scottish philosopher. He is considered the father of modern economics. Smith is most famous for his 1776 book, “The Wealth of Nations ."

Detailed explanation-2: -The essential feature of capitalism is the motive to make a profit. As Adam Smith, the 18th century philosopher and father of modern economics, said: “It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest.”

Detailed explanation-3: -Arab thinker Ibn Khaldun invented economic theory 400 years before Adam Smith did.

Detailed explanation-4: -He argued that profits flowed from capital investments, and that capital gets directed to where the most profit can be made. These ideas-That wealth follows capital, and that individuals own capital-are core to capitalism as we know it today.

Detailed explanation-5: -Modern capitalist theory is traditionally traced to the 18th-century treatise An Inquiry into the Nature and Causes of the Wealth of Nations by Scottish political economist Adam Smith, and the origins of capitalism as an economic system can be placed in the 16th century.