adam smith

Who was Adam Smith?

A Scottish economist and philosopher (1723–1790), often called the “Father of Modern Economics.”

What is Adam Smith’s most famous book?

The Wealth of Nations (1776), where he explained how economies work and laid the foundations of capitalism.

What is the “invisible hand” theory?

Smith’s idea that when people act in their own self-interest, they unintentionally help the overall economy through market forces

What did Adam Smith believe about government and the economy?

He supported limited government intervention — believing free markets and competition naturally create growth and fairness.

Why was Adam Smith important?

He shaped modern economic theory, influenced capitalism, and inspired later economists like David Ricardo and John Stuart Mill.