economics: section 2.2

adam smith

“father of modern economics”

wealth of nations

most famous economic book in history; established basic principles of modern economics (1776)

• division of labor

• specialization

what are smith’s economic principles?

division of labor

separation of complex work into individual tasks to increase productivity

specialization

allowing an individual to excel in one specific area of his field resulting in higher quality products or service

sell

fill in the blank

with the “invisible hand” of the market, the producer’s desire is to _____

buy

fill in the blank

with the “invisible hand” of the market, the consumer’s desire is to ____

1. together

2. both

fill in the blank

with the “invisible hand” of the market, the “invisible hand” brings the desires _________ and satisfies ______ of them