Question

b) Identify an economist (Adam Smith) who agrees that in general free trade is a desirable way of organizing economic and social activity. Identify another economic concept (don't use Invisible hand) that this Economist supports. Discuss how this economic concept can help you improve your life or society.

Your answer needs to provide at least three paragraphs.
The first paragraph provides information about the economist.
The second paragraph identifies the economic concept that you have chosen.
The third paragraph discusses how you are going to apply this concept.

Answer all the questions in well developed paragraphs. The paragraphs should be at least five or six sentences long, and they should clearly include a topic sentence.

Answer 1

ADAM SMITH (baptized June 5, 1723, Kirkcaldy, Fife, Scotland—died July 17, 1790, Edinburgh)

Adam Smith was an 18th-century Scottish economist, philosopher, and author who is considered the father of modern economics. Smith argued against mercantilism and was a major proponent of laissez-faire economic policies. Smith's most notable contribution to the field of economics was his 1776 book, "An Inquiry into the Nature and Causes of the Wealth of Nations."

Smith's life begins at baptism on June 5, 1723 in Kirkcaldy, Scotland. Smith attended the University of Glasgow in Scotland at age 13, studying moral philosophy. Later, Smith enrolled in postgraduate studies at the prestigious Balliol College at Oxford University. During his years spent teaching and working at Glasgow, Smith worked on getting some of his lectures published. His book, "The Theory of Moral Sentiments," was eventually published in 1759 book. In 1787, Smith was named rector of the University of Glasgow, and he died just three years later, at the age of 67.

THE ECONOMIC CONCEPT CHOSEN

'Wealth of Nations'

In 1776, Smith published An Inquiry into the Nature and Causes of the Wealth of Nations (Wealth of Nations), which is thought of as the first work dedicated to the study of political economy. Economics of the time were dominated by the idea that a country’s wealth was best measured by its store of gold and silver. Smith proposed that a nation’s wealth should be judged not by this metric but by the total of its production and commerce—today known as the gross domestic product (GDP) The book touches upon such broad topics as the division of labour, productivity, and free markets

THE APPLICATION OF THIS CONCEPT IN TODAY'S WORLD

Inquiring into the nature of the wealth of nations, Smith famously argued that Wealth is real goods and services that satisfy consumers. And the greater both the number of consumers satisfied and the intensity of that satisfaction, the wealthier the nation.

Gross domestic product (GDP)

Gross domestic product (GDP) is the total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period. As a broad measure of overall domestic production, it functions as a comprehensive scorecard of a given country’s economic health. GDP is an accurate indicator of the size of an economy and the GDP growth rate is probably the single best indicator of economic growth.