The Reference Library

Adam Smith — Glossary

Key terms and definitions from the Adam Smith course. Each term links to a full explanation.

Terms: 9
Categories: 1

Showing 9 entries

A

1 entry

Adam Smith's Invisible Hand

The self-regulating behavior of the marketplace where individuals' pursuit of [Self-Interest](https://modeldiplomat.com/learn/glossary/self-interest) leads to societal benefits.

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D

1 entry

Division of Labor

A concept introduced by Adam Smith that describes how dividing tasks among workers increases productivity.

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E

1 entry

Economic Liberalism

A political and economic philosophy emphasizing free markets and individual liberties, rooted in Adam Smith's ideas.

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I

1 entry

Invisible Hand

Adam Smith's concept describing the self-regulating behavior of the marketplace where individuals' pursuit of [Self-Interest](https://modeldiplomat.com/learn/glossary/self-interest) unintentionally benefits society as a whole.

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L

1 entry

Laissez-Faire

An economic philosophy advocating minimal government [Intervention](https://modeldiplomat.com/learn/glossary/intervention) in markets, supported by Adam Smith.

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M

2 entries

Market Economy

An economic system where supply and demand dictate production, distribution, and prices, championed by Adam Smith.

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Mercantilism

An economic theory prevalent before Smith, advocating for government regulation of the economy to increase national power.

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S

1 entry

Self-Interest

A fundamental concept in Adam Smith's theory, suggesting that individuals act in their own interest, benefiting society as a whole.

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T

1 entry

The Wealth of Nations

Adam Smith's seminal work that laid the foundations of modern economics and free market theory.

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