Unit 1.2 · Economic Methodology and the Evolution of Economic Thought
Adam Smith and Laissez-Faire (18th Century)
AO2
Syllabus Requirement
Introduces Smith’s ideas on self-interest, the invisible hand and minimal government intervention.
Assessment Objectives
AO2Application and Analysis
Summary
Adam Smith is recognized as a key figure in the development of modern economics, particularly through his work, The Wealth of Nations. His ideas on self-interest, competition, and limited government intervention laid the groundwork for market-based economic thought, emphasizing how markets can efficiently allocate resources without central planning.