Question

merits and demerits of adam smith dafinition of economics

Answer 1

ANSWER: MERITS OF ADAM SMITH DEFINITION.

1. He explains how a Nation's wealth is created and increased.
2. He considers that the individual in the society want to promote his own gain and led by an "invisible hand".
3. He status that every man is motivated by his self interest.

Severe competition in factories and the society help in bettering the product.

DEMERITS OF ADAM SMITH'S DEFINITION ECONOMICS

1. Economic consists of wealth- getting activities and wealth- spending activities.
2. He ignored human welfare as an essential part of Economics.
3. Smith gives his definition when religious and spiritual values are held high.
4. Ruskin and Carlyle criticized economics as 'dismil science' , 'pig science' etc.