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Adam Smith redefined the idea of the market as a thing based on :
government laws
aristocratic rule
supply and demand
globalization
The central thesis of Smith's "The Wealth of Nations" is that our individual need to fulfill self-interest results in societal benefit, in what is known as his "invisible hand". This, combined with the division of labor in an economy, results in a web of mutual interdepencies that promotes stability and prosperity through the market mechanism. Smith rejects government interference in market activities, and instead states governments should serve just 3 functions: protect national borders; enforce civil law; and engage in public works (e.g. education).
By: Gagandeep Singh ProfileResourcesReport error
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