Who wrote The Wealth of Nations?
Q: Who wrote The Wealth of Nations?
A: The Wealth of Nations was written by Adam Smith in 1776.
Q: What did Smith say about economics before his book?
A: Before Smith's book, economics was mainly focused on the king's personal interests and the wealth of a nation was measured by the gold and silver in the country.
Q: What did Smith believe should be used to measure a nation's wealth?
A: According to Smith, a nation's wealth should be measured by its yearly income.
Q: What are the three "factors of production" according to Smith?
A: According to Smith, land, labour, and capital are the three "factors of production".
Q: How does supply and demand affect prices?
A: Prices naturally adjust depending on how much or little there is of something; if there is too much (more supply), prices go down so that people have more reason to buy it. If there is high demand but not enough (scarcity), competition among buyers will drive up prices.
Q: What did Smith think about government interference in markets?
A: Smith believed that markets should be free from government interference; he thought it was better for money to flow freely between buyers and sellers without outside influence so that people could do what was best for themselves which would end up being best for society as a whole.
