We all know that Adam Smith is know as the Father of Modern Economics because he was above all a system builder. He was a British political economist and philosopher. His woks can be described as being the foundations of economic theory. His collective books were included in The Wealth of nations Book 1 to 3. It is within those books that eighteenth to present day economics are studied upon. There is a proof that he began to make a general system analysis for almost two decades before the publication of The Wealth of nations, and the summary of that system were clearly visible before 1776. Smith’s system are mixed with a theory of human nature and a theory of history with a distinctive form of natural theology and some practical observations of economic life.
According to the book of Nebres titled Economics: Concepts, theories, and application, he mention that ” The wealth of nations has also provided for possibly, more than any other single work in its field, as a lead to express systematically government’s economic policies.” This means that through this range of vision, has subjected to considerable modification by economists in the light of historical growth since Smith’s time.
There are several key concepts of the Wealth of nations that Smith mention of how wealth is produced and distributed in society.
First, is the division of labor
Second is Wage rates.
Third is the distribution of wealth.
Fourth is the natural and market prices.
Fifth is Smith and mercantilism.
Sixth is law of diminishing returns.
Seventh is Smith and physiocracy.
Eighth is natural product.
Ninth is governments.
Tenth and the last concept is human conduct.