Explanation:
Adam Smith is called the "Father of Economics" because he laid the foundation for modern economic thought with his book An Inquiry into the Nature and Causes of the Wealth of Nations, published in 1776. In this book, he introduced key economic concepts such as:
- The Invisible Hand – The idea that individuals seeking their own self-interest can benefit society as a whole through market competition.
- Division of Labor – The concept that specialization in production increases efficiency and productivity.
- Free Market Economy – He advocated for minimal government intervention in economic activities, promoting capitalism and free trade.
His ideas shaped classical economics and continue to influence modern economic policies.
Explanation by: Official MCQ Buddy
Adam Smith is called the "Father of Economics" because he laid the foundation for modern economic thought with his book An Inquiry into the Nature and Causes of the Wealth of Nations, published in 1776. In this book, he introduced key economic concepts such as:
- The Invisible Hand – The idea that individuals seeking their own self-interest can benefit society as a whole through market competition.
- Division of Labor – The concept that specialization in production increases efficiency and productivity.
- Free Market Economy – He advocated for minimal government intervention in economic activities, promoting capitalism and free trade.
His ideas shaped classical economics and continue to influence modern economic policies.