Why is Adam Smith significant in the study of Economics?

Answer 1

Adam Smith is significant in the study of economics primarily for his foundational work, "The Wealth of Nations," published in 1776. He introduced key concepts such as the division of labor and the "invisible hand," which describes how individual self-interest can lead to beneficial societal outcomes. Smith's ideas laid the groundwork for classical economics and shaped modern free-market theory, influencing economic thought and policy for centuries. His emphasis on rational self-interest and competition remains central to economic discussions today.