Adam Smith & NeoClassical Development

 

write 3 paragraph following 3questions answer 1-3 ab
answers that provide context to the broader theoretical or development tradition being asked about, but also respond to the specific prompts. Each answer should only require. When you are asked to respond to a quote from an author, be sure to define their terms (i.e. “division of labor,” “calling,” or “proletariat”) in your answer.

Adam Smith & NeoClassical Development

1. “This division of Labour, from which so many advantages are derived, is not originally the effect of any human wisdom which foresees and intends that general opulence to which it gives occasion. It is the necessary, though very slow and gradual consequence of a certain propensity in human nature which has in view no such extensive utility; the propensity to truck, barter, and exchange one thing for another” (Smith, p. 20).

a. For Smith, what is the basic human motivation that is beneath our “propensity to truck, barter, and exchange”?

b. Connect the dots between wanting to gain an advantage when you trade/exchange with someone to your desire to specialize in a job (Division of Labour).
2. “No regulation of commerce can increase the quantity of industry in any society beyond what its capital can maintain. It can only divert a part of it into a direction into which it might not otherwise have gone; and it is by no means certain that this artificial direction is likely to be more advantageous to the society than that into which it would have gone of its own accord…” (Smith, p. 416).

a. Does Smith believe that governments ought to intervene in the economy? (Relate to his broader argument about the role/responsibilities of government.)

b. How does Smith’s theory of individual self-love (or self-interest) relate to the way he believes investments are best made?
3. “What is prudence in the conduct of every private family [specializing in a single trade, such as a shoemaker, and then exchanging your surplus with someone else, such as a grocer or tailor, to get what you need], can scarce be folly in that of a great kingdom. If a foreign country can supply us with a commodity cheaper than we ourselves can make it, better buy it of them with some part of the produce of our own industry, employed in a way in which we have some advantage. The general industry of the country, being always in proportion to the capital which employs it, will not thereby be diminished…” (Smith, p. 420).

a. According to Smith, how would an open, international market for goods lead to greater wealth for all?

b. How did neo-classical development economists (the experts discussed by Rapley) seek to apply Smith to the problem of poor nations that had failed to develop?
USE google book answer or online article has the question qutoes

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