Adam Smith

1. Please, list as Adam Smith THREE ways by which division of labor lifts output.

First people specialize and become better at the task they have to do.

Second people do not waste time changing from one task to another. This one is very important because changing tasks means changing uniforms, tools, and places.

Third by focusing in only one task people are more likely to invent new ways or machinery to make the job easier.

2. Adam Smith was teaching economics at harvard when he decided to write the Wealth Of Nations.

N/ Because he did not teach economics because he has never take an economic class so how could he teach a class he has never taken. So he was not a teacher.

3. Adam Smith vision about economics is static.

N/ Because situations are always changing. The scarcity of resources makes society to demand different things as time passes so the demands of resources are always changing.

4. The type of economy that A. Smith visualized years ago is the same as the one in Cuba present.

N/ Because Smith was in favor of free trade economy between people and countries. Cuba nowadays doesn't allow free trade because there are laws who prohibited it.

5. Smith was mainly a philosopher.

A/ He wanted to understand peoples cause and effect choices. Philosophers try to look for the answers about peoples behavior.

6. Please explain "Invisible Hand Theory".

Is about peoples tendency to consider an imaginary person while making decisions commonly about scarce resources. People do this to get the society opinion about the choice they have to make.

7. A Smith praised taxes and tariffs as very important tools in free trade econ.

N/ Because if he did he will be in favor of the government to control the econ. And he wasn't in favor of this. The whole point of free trade econ was that it wasn't controlled by the government.

8. A Smith gave high consideration to the analysis of labor wages.

A/ Because he said that their are certain exceptions in which labor wages are different. If the joob is risky, if it demands higher standards of trust, if the person needs special specialization to do the joob.