Who is Adam Smith?
The Father of Economics and a pioneer of capitalism. He has several central arguments and theories that hold extreme significance even in the present.
What are the most important?
- Division of labor equates to efficient production
- Competition creates lower prices
- Laissez Faire: translates to leave alone and Smith argued economies are better without government regulation
- The Invisible Hand: the concept that self-interested consumers naturally create equilibrium
How do I remember it?
I immediately correlate Adam Smith with any basic theories on the free-market and capitalism. So, when you come across any Adam Smith questions just remember the core theories on the free-market.
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