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1. Adam Smith is considered the father of modern economic theory. Explain his ideas about division of labor, self-interest and the invisible hand. Do you think these ideas are relevant today? How do they relate to do "Big Ideas" from the PowerPoint presentation from this module?
With regards to division of labor, Adam Smith explains that it is the greatest improvement in the productive powers of labor and the judgment with which it is anywhere directed or applied. According to Adam Smith division of labor leads to increase in dexterity in every workman, second it leads to saving of time and leads to the invention of a great number of machines that help reduce labor.
According to Adam Smith, in their own self -interest will people give themselves to rewarding economic activities that they would maximize economic activity. The invisible hand is the sefl-regulating nature of marketplace. The invisible hand said Adam Smith also promoted the good of his community.
In today's economy, with globalization, Adam Smith's invisible hand is very relevant. Trade and the movement of goods all over the world, including raw materials and oil is the evidence of the invisible hand at work. The proliferation of ...
This answer provides you an excellent discussion on modern economic theory