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Adam Smith The Great Thinker
From 1723-1790 Adam Smith thought about many things and eventualy wrote a book on how everyone was born with the knowledge of right and wrong. Eventualy he wrote a second book about called The Wealth Of Nations, this book explained how ordinary people could tell right from wrong and how everyone would become wealthier if they are allowed to tell right from wrong. -
The Invisable Hand Theory
The invisible hand theory was created by Adam Smith in the beleif that, It brings together people who want something with people who can give it to them-all for a price. -
Supply And Demand
Supply and demand is the invisible hand at work. Demand is when a person (buyer) wants something that another person (seller) has. Supply is how much quantity the person (seller) has of that thing the other person (buyer) wants. -
Production and Consumption
Producers and Retailers of products want to make money, and consumers want to save money. Producers can sell more goods, increase the amount of the profit they make on each sale. Consumers want the best product at cheapest possible price. -
Global Economey
A person is often economically damaged and emotionly hurt when the ability to earn an income disappears. He/she no longer seems to be a valued member of society. This is called our social status and affects how we think about ourselves. -
Trade Triangle
Slaves were taken from Africa to the Americans where they produced raw material such as sugar, tobacco, and cotton which were taken to england, the sugar was made into rum, tobacco was prepared for smoking, cotton was made into fabrics, etc... -
The Zero Sum Game Established
If I win you lose,and if you win I lose. But according to Adam Smith thats not how the world should work. -
Specialization Spreads
The world does not have a finite amount of wealth-In wealth may be infinite if the people of each country specialize, then everyone will be wealthier. -
Bretton Woods Conferance
The United Monetary and Financial Conference, commonly called the bretton woods conference. It was held in July 1944 at a resort hotel in New Hampshire, United States. -
The World Bank
The World Bank was created to provide for the reconstruction of Europe after World War II. -
F.A Hayek wins Nobel Prize
F.A Hayek was an economist from Austria who received the nobel prize in economics.
