Which economist's ideas were influential to the development of modern capitalism?

Which economist's ideas were influential to the development of modern capitalism?

• A. Thomas Malthus
• B. John Stuart Mill
• C. Adam Smith
• D. Friedrich Hayek

Answer: (C)

The ideas of Adam Smith are central to the development of modern capitalism, primarily through his seminal work, "The Wealth of Nations." Published in 1776, Smith introduced key concepts such as the "invisible hand" of the market, which suggests that individuals pursuing their own self-interests inadvertently contribute to the overall economic well-being of society. He advocated for free markets and competition, arguing that minimal government intervention allows for the most efficient allocation of resources. Smith's emphasis on the division of labor, productivity, and market dynamics laid the foundational principles for capitalist economic theory and practices that shape modern economies today. His insights continue to influence economic thought, public policy, and business practices, making him a pivotal figure in the history of economic theory.

The ideas of Adam Smith are central to the development of modern capitalism, primarily through his seminal work, "The Wealth of Nations." Published in 1776, Smith introduced key concepts such as the "invisible hand" of the market, which suggests that individuals pursuing their own self-interests inadvertently contribute to the overall economic well-being of society. He advocated for free markets and competition, arguing that minimal government intervention allows for the most efficient allocation of resources. Smith's emphasis on the division of labor, productivity, and market dynamics laid the foundational principles for capitalist economic theory and practices that shape modern economies today. His insights continue to influence economic thought, public policy, and business practices, making him a pivotal figure in the history of economic theory.