Adam Smith Wealth of Nations - Essay Example

Only on StudentShare

Extract of sample
Adam Smith Wealth of Nations

Smith is actually considered to be the Father of Modern Economics.Adam Smith's ideas as reflected in his work are still relevant today. His concept of free-trade is still what majority of the world's economy is practicing. Free trade, according to Smith, is the ability of the economy to produce the sufficient amount of goods and provide different varieties with the guidance of what he calls "the invisible hand." If there is a shortage of a certain product, price tends to increase which, in turn, gives higher profit to the producers. This entices more producers to enter the market which leads to the increase in supply of the product and more competition among the producers. Given this condition, price naturally gets lower. Once the price gets too low that the producers would incur losses than profits, they will be out of business. Although this competition can be due to human's pursuit of self-interest, this benefits the society as a whole by keeping the prices of goods at a low level and, at the same time, having a variety of products and services.This idea is what happens in our modern economic society. Businesses get into the market because they can see a potential profitable market. And what prevents these businesses to monopolize in their field is the fact that there will be other businesses or individuals who would want to get into the same market and have a fair competition. ...
Download paper


Adam Smith is one of the well-known political economists in the 18th century because of his work called "An Inquiry into the Nature and Causes of the Wealth of Nations" or simply called Wealth of Nations. …
Author : knienow

Related Essays

The argument in "The Wealth of Nations" by Adam Smith depends on the possibility of "failure". Why is this so What implications does this have
The wealth of nations forms the second branch of Smith's science, and its historical sweep contains part, but only a diminutive part, of such an account. Possibly a manuscript was among the objects consigned to the flames by his literary executors. We do, nevertheless, have two sets of notes recording Smith's early Lectures on Jurisprudence; these notes provide an inadequately early and imperfect indication of what his missing branch of the science might have contained. In spite of their mistakes, these notes have significantly increased our awareness of Smith's intention to communicate an...
5 pages (1255 words) Essay
The Impact Of Tourism In The Construction Industry
This type of development is now under the scanner and faces various pressures and challenges like environmental regulations, land-use planning and protocols, local socio-economic forces and other requirements. Under this situation, it makes a good case to assess and investigate the impacts and implications of modern-day tourism on the construction sector.
8 pages (2008 words) Essay
The argument in "The Wealth of Nations" by Adam Smith depends on the possibility of "failure". Why is this so? What implications does this have?
Smith has based his theories about opulence on the general principle that man is not by nature a benevolent creature but is rather motivated by self interest to seek the best benefits for himself, it also follows that viewed from the other side of the coin, such actions to promote himself and improve his own welfare arise out of a reluctance to fail. The extent of man’s industriousness and motivation are dependent upon the depths to which he expects to fall if he fails.
5 pages (1255 words) Essay a great enemy to good management. Adam Smith, (1776), The Wealth of Nations, Book I, Chapter XI. Discuss.
In the light of this statement therefore this question involves the discussion of the various market structures and their contribution to the achievement of the highest possible level of allocative and productive efficiency (in both static and dynamic senses).The question already suggests that the Monopolised market structure is not conducive to “good management” or efficient resource allocation. Resource allocation in a modern economy demands allocative efficiency which means that resources should be allocated to match the wants of society. Essentially this would mean a point of...
4 pages (1004 words) Essay
adam smith biography
During this time he lectured on various topics, and he explained for the first time his ideas of "the obvious and simple system of natural liberty", which was the basis of his influential book entitled An Inquiry into the Nature and Causes of the Wealth of Nations (The Wealth of Nations).1
8 pages (2008 words) Essay
Adam Smith: Wealth of Nations - Book IV, Chaper II
Smith then retired to Kirkcaldy with his life pension and worked on Inquiring into the Nature and Causes of the Wealth of Nations, which was published in 1776, after almost twelve years of endeavor. In 1778, Smith was appointed Commissioner of Customs in Scotland. In this post, he settled down with his mother, friends and books in Edinburgh, until his death in 1790.
5 pages (1255 words) Essay
Answer the following question about Adam Smith with 1-2 paragraph answers...
Q 3. Self-interest in the context of the book means that an individual applies his talent to a certain craft or job so he can exchange his produce with other goods which he will need for himself. A person is motivated to apply himself to work, which others can benefit from, not for the sake of others but for his own self. Self-interest entails wisdom and intelligence whereas selfish and egotistical motives refer to vanities and mindless instincts. Smith had self-interest in mind when he stated the aforecited passage.
7 pages (1757 words) Essay
Got a tricky question? Receive an answer from students like you! Try us!