Adam Smith
An Inquiry into the Nature and Cause of The Wealth of Nations
Students are to watch the video below and answer the questions.
Video
1) Adam Smith begins with The Wealth of Nations with an example of a pin factory in order to demonstrate what exactly?
2) How does The Wealth of Nations explain how Nations would take their past economic practice of Mercantilism and shift how Nations would eventually deal with the global market?
4) What are some of the things that you learned about economics from this video that relates to current situations that are happening in today's world?
1. Adam Smith uses the example of a pin factory in order to demonstrate that it is more efficient if certain people specialize in getting certain things to build a pin instead of one man needing to do every single job himself to just make one pin.
ReplyDelete2.The Wealth of Nations explains that for Nations, instead of the past ideas of Mercantilism where every Nation wanted a win/lose situation, Nations all specialize in their own productions and can trade fairly with each other and all nations can have win/wins.
3. Division of labor increases productivity because instead of having all people trying to do smaller jobs to create on thing, they separate people that specialize in a specific job and focus on just creating that so then it can work its way to the next specialization of jobs to then eventually a group of people that specialize in selling the product.
4. Some things that I learned about economics that relate to current situations that are happening in today's world were things like when there is an overproduction of certain goods, for example when it talked about how there were too many workers specializing in building homes and then not enough workers in clothing, which meant clothing prices became higher. We see this today in something like an over pricing of healthy and hand-picked farm foods since there is not an overproduction of these and it's harder to make, while not as healthy, easy to make, and over production of not farm grown foods are a lot cheaper and easier to come by.