HISTORY
THE INDUSTRIAL REVOLUTION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The law of self interest
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the law of consumption
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the law of consumers best interest
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the of supply and demand
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Detailed explanation-1: -Adam Smith was among the first philosophers of his time to declare that wealth is created through productive labor, and that self-interest motivates people to put their resources to the best use. He argued that profits flowed from capital investments, and that capital gets directed to where the most profit can be made.
Detailed explanation-2: -The free market economist Adam Smith is NOT known for? The circular flow model of a mixed economy.
Detailed explanation-3: -Adam Smith is regarded as the father of modern economics thanks to his development of a multitude of foundational economic theories and concepts on which the discipline was built. Some of his most influential contributions include division of labor, gross domestic product (GDP), and the theory of the invisible hand.
Detailed explanation-4: -Smith introduced the concept that free trade would benefit individuals and society as a whole. He believed that governments should not impose policies that interfered with free trade, domestically and abroad.