Lesson 1 Lesson 1: The Invisible Hand
Presented by: Dr. Daniel Hammond
Wake Forest University
Fundamental Economic Concepts from the Classics
Producing goods and services from scarce resources is the fundamental economic problem that all nations face. In this lesson we will consider how “the invisible hand” process famously described by Adam Smith solves that problem, in part by engaging the division of labor to efficiently maximize the production process.
"It is the great multiplication of the productions of all the different arts, in consequence of the division of labour, which occasions, in a well-governed society, that universal opulence which extends itself to the lowest ranks of the people."
"The key task facing any economy is the allocation of scarce resources which have alternative uses."
Fundamental Economic Concepts from the Classics, Part IV with Dr. Daniel HammondPlay Now
Adam Smith: The Invisible Hand with Dr. James Otteson and Learn LibertyPlay Now
James Gwartney, et al., Common Sense Economics, pp. vii-ix, 5-14Read Now
Adam Smith, An Inquiry into the Nature and Causes of the Wealth of Nations by Adam Smith, pp. 5-18, 418-422Read Now
Frédéric Bastiat, Economic Sophisms, I.7.1 - I.7.29Read Now