Q.Define Economics according to Adam Smith.
Adam Smith set out his view of Economics in An Inquiry into the Nature and Causes of the Wealth of Nations (1776). His approach is usually summarised as: "Economics is the science of wealth." On this view, Economics studies how a nation's wealth is produced (through land, labour and capital), exchanged (through trade and markets), and distributed (as wages, rent, interest and profit among the factors of production) — with consumption of that wealth added by later classical writers. Smith argued wealth grows through division of labour, free trade and capital accumulation, and that true national wealth is a country's actual output of goods and services, not merely its stock of gold and silver, which was the mercantilist belief he was arguing against.
Adam Smith's wealth definition: Economics is the science of wealth, studying the production, exchange and distribution of the wealth of nations.
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