Terms in Economics

Topics: Economics, Adam Smith, Capitalism Pages: 1 (254 words) Published: July 24, 2013
Laissez-faire (French for "leave it be") economic theory argues that the economy works best when it is governed solely by market forces. There should be no government intervention in the form of taxes, unions, duties, tariffs, quotas, restrictive laws, monetary policy, etc. The market is left to run on its own. Mercantilism is the economic doctrine that government control of foreign trade is of paramount importance for ensuring the military security of the country one of a school of political economists who followed Quesnay inholding that an inherent natural order properly governed society,regarding land as the basis of wealth and taxation, and advocating alaissez-faire economy. Economics is the social science that analyzes the production, distribution, and consumption of goods and services. Barter is a system of exchange by which goods or services are directly exchanged for other goods or services without using a medium of exchange, such as money. Adam Smith is often touted as the world's first free-market capitalist. While that designation is probably a bit overstated, Smith's place in history as the father of modern economics and a major proponent of laissez-faire economic policies is quite secure. Read on to learn about how this Scottish philosopher argued against mercantilism to become the father of modern free trade

1. Land - referring to the natural resources we can obtain from them as well as building premises. 2. Labor - Workers that are employed.
3. Capital - referring to buildings such as factories, machinery and equipment used in the production process.
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