Key Ideas

1. Division of labor leads to increased productivity. Adam Smith argues that dividing tasks among workers allows them to specialize and become more efficient in their work.

2. The invisible hand guides economic activity. Smith introduces the concept of the invisible hand, which suggests that individuals pursuing their own self-interests in a free market economy ultimately benefit society as a whole.

3. Free trade promotes economic growth. Smith emphasizes the importance of free trade and criticizes trade barriers such as tariffs and monopolies, as they hinder economic progress.

4. Wealth is....
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Quiz