Adam Smith & Economic Liberalism (10 cards)

Adam Smith

An economist who argued in 1776 that wealth could be created and increased through trade and economic freedom.

Economic Liberalism

An approach that supports free markets, free trade, and limited government intervention in the economy.

Trade Liberalization

The reduction or elimination of barriers to international trade.

Invisible Hand

Adam Smith's idea that individuals pursuing their own self-interest can unintentionally benefit society as a whole.

Laissez-Faire Economy

An economic system with minimal government intervention in markets.

Self-Interest Proposition

Adam Smith's argument that individuals should be free to pursue their economic interests.

Comparative Advantage

The principle that countries should specialize in producing goods they can produce relatively more efficiently than others.

State Proposition

Adam Smith's argument that countries should specialize according to their comparative advantages.

International Proposition

Adam Smith's argument that free international trade benefits all countries involved.

Free Trade

The exchange of goods and services across borders with few or no government restrictions.