| Adam Smith | a Scottish economist, philosopher, and author in the 18th century
who is considered the father of modern economics |
| his major works | “The Theory of Moral
Sentiments” and “An Inquiry into the Nature and Causes of the Wealth of Nations”. |
| Mercantilism, | an economic system of trade based on
the idea that a nation's wealth and power were best served by increasing exports and so involved increasing trade. Smith argued against it since Mercantilism Policies was designed for the benefit of the Government and the commercial class. |
| Under mercantilism | nations frequently engaged their military might to
ensure local markets and supply sources were protected, to support the idea that a nation's economic health heavily relied on its supply of capita |
| Laissez-faire | an economic theory from the 18th century that opposed any
government intervention in business affairs. It is a French term that translates to "leave alone" or literally, "let you do". |
| Free Market | an economic system based on supply and demand with little or
no government control. |
| In the first book of Smith “The Theory of Moral Sentiments | he proposed the idea of the invisible hand, the tendency of free markets to regulate themselves by means of competition, supply and demand, and self-interest. The invisible hand is a metaphor for the unseen forces that move the free market economy |
