Adam Smith's life
What Scottish village was Adam Smith born in?
Kirkcaldy
He is known as the "Father of ______".
Modern economics
What is another name for the invisible hand?
Natural control
Self-interest means individuals want to improve this.
Their life (or well-being)
Smith lived during the start of what economic shift?
The industrial revolution
what university did he attend at age 14?
University of Glasgow
Smith believed people should be free to pursue and achieve what?
Wealth
According to Smith, this is not necessary to control the economy.
Government regulation
In economics, self-interest often means a desire for what?
Greater profit
In Smith’s time, economics was developing into a complete what?
System
At 17, he earned a scholarship to study where?
Oxford
What type of economy was the main part of his teachings?
Free Market Economy
If one farmer charges 3× the price for potatoes, customers will do this.
Go to another farmer
A producer’s self-interest must not ignore this.
Obligation to society
What technological period created new opportunities for wealth?
the Industrial Revolution
At 27, he became a professor of what subject?
Logic
Smith said human lives should not be fully controlled by what?
Laws
Even if all Ontario farmers raise prices, what type of people could enter the market?
Entrepreneurs
In a free market, no producer can raise prices too high because of what?
Competition
Smith believed new wealth should not be fully controlled by this authority.
government (or laws)
What french group influenced smith's ideas about freedom and wealth?
Physiocrats
Smith believed freedom in economics advances this greater outcome.
The common good
The invisible hand explains how markets can regulate themselves through these two forces.
Supply and demand (or competition and self-interest)
Self-interest + competition work together to advance what?
The common good
Name Smith’s two biggest economic philosophies.
self-interest, the invisible hand and/or free market