The Wealth of Nations

Authors: Adam Smith

Key Ideas

1. Division of labor leads to increased productivity: Adam Smith argues that by dividing tasks into specialized jobs, workers can become more skillful and efficient, leading to higher productivity and economic growth.

2. The invisible hand: Smith introduces the concept of the invisible hand, which suggests that individuals pursuing their own self-interest in a free market can unintentionally promote the well-being of society as a whole.

3. The role of self-interest: Smith believes that individuals acting out of self-interest in a competitive market will strive to provide goods and services t....
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Quiz

1. What is the main idea behind Adam Smith's concept of the 'invisible hand'?

a. Individuals acting in their own self-interest unintentionally benefit society

b. The government's control over the economy leads to prosperity

c. Competition is the key driver of economic growth

d. Division of labor leads to increased productivity

2. According to Adam Smith, what is the role of government in the economy?

a. The government should regulate all economic activities

b. Limited government intervention is necessary for the market to function properly

c. The government should control all aspects of production

d. Government ownership of all industries is essential for economic growth

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