Adam Smith Research Paper
Adam Smith: The Father of Modern Economics & Capitalism
Adam Smith’s real birth date is unknown, but it is inferred that he was born in June 1723 in the port town of Kirkcaldy on the eastern shore of Scotland because of his baptism date. He was said to be born with naturally talented oratory and writing skills so his mother decided to put them to use by giving him an education. When he turned 14 he was taken to Glasgow College where he studied philosophy and economics, Adam Smith further matured his thinking and free speech skills there. After three years he transferred to the College of Oxford to further his studies and then he met philosopher David Hume. Smith bonded with Hume and wrote on different subjects with him including philosophy and economics.
Adam Smith eventually ended up as a philosophy professor at Glasgow in 1751. With his gained knowledge and skills in …show more content…
This free market encourages capitalism which is a political and economic system that allows trade to be managed by private owners. Gorman stated that this would allow the Invisible hand to “guide everyone in their economic endeavors, create the greatest good for the greatest number of people, and generate economic growth”. (Gorman 1).
Adam Smith also gave his theory on the market price; the theory is also an example showing self-interest because both people want to better their own conditions. The seller wants to sell his/her goods for the highest price possible to make the most profit off of his product. The buyer wants to buy the product for the lowest price possible to save money. Do to this the market price of a product would be is the lowest price for the seller and the highest price for the buyer. In other words it would be consent between the two.
Market Price = Lowest Price for Seller & Highest Price for Buyer =
Adam Smith’s real birth date is unknown, but it is inferred that he was born in June 1723 in the port town of Kirkcaldy on the eastern shore of Scotland because of his baptism date. He was said to be born with naturally talented oratory and writing skills so his mother decided to put them to use by giving him an education. When he turned 14 he was taken to Glasgow College where he studied philosophy and economics, Adam Smith further matured his thinking and free speech skills there. After three years he transferred to the College of Oxford to further his studies and then he met philosopher David Hume. Smith bonded with Hume and wrote on different subjects with him including philosophy and economics.
Adam Smith eventually ended up as a philosophy professor at Glasgow in 1751. With his gained knowledge and skills in …show more content…
This free market encourages capitalism which is a political and economic system that allows trade to be managed by private owners. Gorman stated that this would allow the Invisible hand to “guide everyone in their economic endeavors, create the greatest good for the greatest number of people, and generate economic growth”. (Gorman 1).
Adam Smith also gave his theory on the market price; the theory is also an example showing self-interest because both people want to better their own conditions. The seller wants to sell his/her goods for the highest price possible to make the most profit off of his product. The buyer wants to buy the product for the lowest price possible to save money. Do to this the market price of a product would be is the lowest price for the seller and the highest price for the buyer. In other words it would be consent between the two.
Market Price = Lowest Price for Seller & Highest Price for Buyer =