Essay question Example | Topics and Well Written Essays - 1750 words

Question - Essay ExampleiThe argument is however based on the point that neoclassical economists claims or rather emphasize metalworkers invisible hand while classical economists on the other hand think that smith clearly stipulates his programme for promoting the Wealth of Nations in the first sentence of his work. Smith uses the phrase the invisible hand in both theories under different mise en scene and each having a different meaning.Therefore, different interpretations of the phrase can be regarded as the source of conflicting ideas between classical and neoclassical economists. Moreover, various economists generate advance theories that are in line with smiths theory of wealth of a nation or contradicting theories thus sparing policies are to a greater extent of a battle field between neoclassical economists and classical economist who concurred with smiths theory of an inquiry into the nature and the cause of wealth of a nation.Adam Smiths work, Wealth of Nations is regard ed as the perfecto of the theory of moral sentiments since it targets the problems of how people express their self-interests and their morality. He argued that a pin factory that employs division of travail is likely to produce thousands of pins more than a pin factory that each individual worker attempts to produce his or her own pin. Therefore he advocated for forte and division of labor in production for efficiency. Adam Smith also emphasized on the importance of flexibility during transition from one phase of career to the other by developing institutions that are fit for that phase and this therefore illustrates self-interest and morality in the society. Smith described peoples economic behavior as individuals who are guided by an invisible hand. He argued that production of high priced products in relation to production cost would feature individual production of this product