Question

What were the main economic contributions of The Physiocrats and Adam Smith? What are the similarities and differences of those economic contributions?

Answer 1

Physiocrats given the theory of wealth known as physiocracy , they are derived power of economy from the value and importance of agriculture. This theory initially thinks about any countries agriculture development and this sector always give surplus to any country in different forms.

Adam Smith: he gave Theory of invisible hand and wealth of nations. Which is intial based on physiocrats idea as agriculture was predominant initially and thus give base for other sector to evolves after industrial revolution as raw materials from agriculture and income from agriculture used as investment.

Physiocrats theory mainly give important to agriculture development, but Smith theory give importance to other sector as well . It also give trade of surplus produce From agriculture and other sector in the world and thus make free trade concept famous.