WORLD HISTORY

Detailed explanation-1: -Laissez-faire is a French phrase that translates to “allow to do.” It refers to a political ideology that rejects the practice of government intervention in an economy. Further, the state is seen as an obstacle to economic growth and development. The term originated in the 18th century during the Industrial Revolution.

Detailed explanation-2: -Smith’s best-known ideas formed the basis of economic theory, including the invisible hand theory (the idea that free-markets coordinate themselves), the division of labor (the idea that people should specialize in specific tasks), and the measurement of economic activity (Gross Domestic Product).

Detailed explanation-3: -Adam Smith’s Definition of Economics Smith defined economics as “an inquiry into the nature and causes of the wealth of nations.”