Introduction to Micro Economics In the present times, the study of economics is done from two viewpoints namely Micro and Macro. From the first viewpoint, the economic problems of various units, like – individuals, families, firms etc. are studied individually, whereas; from the second viewpoint, the same units of persons, families, firms etc., are studied in …
- Name: Adam Smith
- Date of birth: June 16, 1723
- Date of death: July 17, 1790
- Nationality: Scottish
- Occupation: Moral Philosopher and Political Economist
- Known for: The Wealth of Nations
Adam Smith is considered one of the most influential thinkers of the Age of Enlightenment. He is best known for his book “The Wealth of Nations”, which is considered the first modern work of economics.
Smith was born in Kirkcaldy, Scotland, and studied at the University of Glasgow and the University of Oxford. After graduating, he worked as a tutor and then as a lecturer in moral philosophy at the University of Glasgow. In 1776, he published “The Wealth of Nations”, which argued that the wealth of a nation is not determined by its gold or silver reserves, but by its productivity. He also argued that the best way to promote economic growth is through free trade and competition.
Smith’s ideas had a profound impact on the development of economics and politics. His work was instrumental in the rise of capitalism and the Industrial Revolution. He is also considered one of the founders of modern sociology.
Key ideas of Adam Smith’s work
The division of labor
Smith argued that the division of labor is essential for economic growth. When workers specialize in a particular task, they become more efficient and produce more output.
The invisible hand
Smith argued that the market economy is self-regulating. When individuals pursue their own self-interest, they are also promoting the general welfare.
Smith argued that free trade is beneficial for all countries involved. When countries specialize in producing goods and services that they can produce at a lower cost, they can exchange these goods and services with other countries, and everyone benefits.
Smith argued that competition is essential for economic growth. When businesses compete, they are forced to innovate and produce better products at lower prices. This benefits consumers.
Adam Smith’s ideas have been controversial since they were first published. Some people argue that his ideas are too simplistic and that they do not take into account the complexity of the real world. Others argue that his ideas have been used to justify inequality and exploitation. However, Smith’s ideas remain influential in economics and politics.
Introduction to Robbins Definition Robbin’s definition of Economics challenged Dr. Marshall’s definition of Economics which was a major improvement over the definition of Adam Smith and other ancient Economists. Before Prof. Lionel Robbins, Prof. Marshall tried to give a complete and faultless definition of economics. At that time people started thinking that Economic Science has …
Criticism Of Marshall Definition Dr. Marshall’s definition of Economics is a major improvement over the definition of Adam Smith and other ancient Economists. This definition was recognized between 1890 to 1932 and it seemed that the controversy relating to the definition of Economics had ended. But a renowned Professor of The London School of Economics, …
Economics is a science of choice-making. Introduction to Marshall Definition Marshall definition of Economics was the first to challenge Adam Smith’s definition. Dr. Alfred Marshall (Born. 26 July 1842, Died 13 July 1924) was the first Economist, who denied the wealth-related definitions of Adam Smith, which was in vogue for a long time, in his …