Who is considered the "father of modern economics"?

• A. John Maynard Keynes
• B. Milton Friedman
• C. Adam Smith
• D. Carl Marx

Answer: (C)

Adam Smith is considered the "father of modern economics" primarily due to his seminal work, "The Wealth of Nations," published in 1776. In this book, Smith laid the foundation for classical economics by introducing key concepts such as the division of labor, the function of free markets, and the idea of the "invisible hand," which describes how individuals pursuing their own self-interest can lead to positive economic outcomes for society as a whole. Smith's insights emphasized the importance of competition and the benefits of a market-driven economy.

His theories shifted the understanding of economics from a view dominated by mercantilism, which emphasized state control and intervention, to a framework that valued individual entrepreneurship and market dynamics. This shift has had a lasting impact on economic thought and policy, making Smith a pivotal figure in the development of economic theory that persists in modern discussions about market economies today.