ADAM SMITH

THE FATHER OF ECONOMICS

MAIN DISTRIBUTION TO ECONOMICS :
THE THEORY OF MORAL SENTIMENTS
INVISIBLE HAND --TENDENCY OF FREE MARKETS TO
REGULATE THEMSELVES BY THE MEANS OF SUPPLY &
DEMAND, COMPETITION, AND SELF-INTEREST
GDP CONCEPT & THE THEORY OF COMPENSATING
WAGE DIFFERENTIALS
A NATION'S PROSPERITY SHOULD BE EVALUATED
BY THEIR LEVELS OF PRODUCTION & COMMERCE
UNDESIRABLE JOBS TEND TO HAVE HIGHER WAGES
THE WEALTH OF NATIONS
WHY ARE SOME COUNTRIES WEALTHIER THAN
OTHERS? -- TRADING (LIMITED GOVERNMENT)
EQUILIBRIUM THEORY
QUANTITY OF COMMODITY IS SUFFICIENT
MARKET PRICE > NATURAL PRICE
QUANTITY EXCEEDS DEMAND
MARKET PRICE < NATURAL PRICE
3 ELEMENTS OF PROSPERITY : SELF-INTEREST.
LIMITED GOV, SOLID CURRENCY & FREE MARKET

APPLICATION IN THE REAL WORLD :

INVISIBLE HAND : EVERY INDIVIDUAL INADVERTENTLY HELPS TO CREATE SOCIAL BENEFITS
GDP : ENABLES ECONOMISTS TO MAKE DECISIONS EFFICIENTLY AS THEY WILL BE ABLE TO SEE
WHETHER THE ECONOMY IS EXPANDING OR CONTRACTING
THE WEALTH OF NATIONS : THE ESTABLISHMENT OF OPEC -- SETTING THE OIL PRICE IN THE
WORLD'S MARKET

GLOBAL ECON PROBLEM HE MIGHT HELP SOLVE :

EDUCATION : GOV SHOULD PLAY A PART PROVIDING CITIZENS A BASIC EDUCATION
CREATING JOBS : UNIVERSAL EDUCATION SHOULD BE PROVIDED WITH THE PURPOSE OF GIVING
EVERYONE A SPOT IN THE DIVISION OF LABOUR
ELIMINATE CORRUPTION : GOV SHOULD BE ON THE SAME SIDE AS CITIZENS IN ORDER TO BRING
WEALTH TO THE NATION

THAI ECON PROBLEM HE MIGHT HELP SOLVE :

THE DECLINATION OF ECONOMIC GROWTH : RESET THE WHOLE ECONOMIC SYSTEM USING THE
IDEA OF A FREE MARKET
BY ALLOWING THE MARKET TO TRADE FREELY AND EFFECTIVELY, IT WILL DEFINITELY
HELP MOTIVATE CITIZENS, FIRMS, AND OTHER SMEs TO CONFIDENTLY TRADE MORE

MARK KIK 12A1