David Ricardo inherited Adam Smith's absolute advantage theory, the theory of comparative advantage that: "No matter what the status of a country's economy is the economic power is weak or strong, the technical level is high or low, can determine their comparative advantage, even if the overa...
aEconomic theory developed in a context in which nationalism was taken for granted as the context of economic activity. Adam Smith wrote about the wealth of nations and showed what national policies led to national economic growth. He took for granted that investors would prefer to do business ...
David Ricardo started out as a successful stockbroker, making $100 million in today's dollars. After reading Adam Smith’s "The Wealth of Nations," he became an economist. He pointed out that significant increases in the money supply created inflation in England in 1809. This theory is known...
The term “knowledge economy” was first coined in the 1960s by Peter Drucker. Themanagementconsultant used the term to describe a shift from traditional economies, where there was a reliance on unskilled labor and primary production, to economies reliant on service industries and jobs requiring mo...
Diseases caused by trypanosomatids include leishmaniasis (Leishmania spp.), Chagas disease (Trypanosoma cruzi), and sleeping sickness (Trypanosoma brucei) that affect millions of people, especially low-income populations, being classified as neglected tr
Adam Smithwas one of the first economists to develop the underlying principles of the rational choice theory. Smith elaborated on his studies of self-interest and the invisible hand theory in his book “An Inquiry Into the Nature and Causes of the Wealth of Nations,” which was published in ...
Adam Smith was one of the first economists to explain how self-interest in a free-market economy can lead to overall economic well-being. Rational Self-Interest Rational self-interest is also a component of Smith’s Invisible Hand theory. With rational self-interest, Smith suggested thathumans ...
New Economic Theories The Scottish economistAdam Smithwas one of the first to question the wisdom of this arrangement. His "Wealth of Nations" was published in 1776, the same year Britain's American colonies declared independence in response to high taxes and restrictive trade arrangements.9 ...
Adam Smith's ideas were well-timed, as the Industrial Revolution was starting to cause tremors that would soon shake the Western world. The (often-literal) gold mine of colonialism had brought new wealth and new demand for the products of domestic industries, which drove the expansion and mech...
Spontaneous order and the price system:The concept of spontaneousmarket ordergrew out of Adam Smith's insight about the "invisible hand." This theory argues market information is imperfect and costly, and the future is uncertain and unpredictable. Since information is imperfect, some system of info...