Questions for review and discussion

The Classical school: Adam Smith

1. Contrast and compare Adam Smith’s and the mercantilists’ views on the nature and causes of
the wealth of nations.
2. Explain Adam Smith’s analysis of the consequences of self-interest coupled with competitive
markets.
3. Contrast and compare Adam Smith and the mercantilists on the proper role of government in
the society.

4. Explain Smith’s views on why the rate of profit will fall as capitalism grows older.
5. What are the duties of the state according to Adam Smith?