Questions what is the main features of the socialist economy?

A. Smith's economic ideas.

Key words: "invisible hand", "natural law", the division of labor, the doctrine of money and income, the labor theory of value, productive and unproductive labor.

Adam Smith was an 18th-century Scottish economist, philosopher, and author, and is considered the father of modern economics. Smith's ideas-the importance of free markets, assembly-line production methods, and gross domestic product (GDP) -formed the basis for theories of classical economics.

Smith argued that by giving everyone freedom to produce and exchange goods as they pleased (free trade) and opening the markets up to domestic and foreign competition, people's natural self-interest would promote greater prosperity than with stringent government regulations.

Invisible hand, metaphor, introduced by the 18th-century Scottish philosopher and economist Adam Smith, that characterizes the mechanisms through which beneficial social and economic outcomes may arise from the accumulated self-interested actions of individuals, none of whom intends to bring about such outcomes. The invisible hand is a metaphor for the unseen forces that move the free market economy. Through individual self-interest and freedom of production as well as consumption, the best interest of society, as a whole, are fulfilled.

What were Adam Smith's natural laws of economics. Many of Smith’s ideas are still taught today, including his three natural laws of economics.

1) The Law of Self Interest-People work for their own good.

2) The Law of Competition- Competition forces people to make a better product.

Division of labor is an economic concept which states that dividing the production process into different stages enables workers to focus on specific tasks. This concept was popularized by Adam Smith in An Inquiry into the Nature and Causes of the Wealth of Nations.

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