What is economics? > Economists seek to answer important questions about how people: industries and countries can maximize their productivity, create wealth. and maintain financial stability. Because the study of economics encompasses many factors that interact in complex ways. economists have different theories as to how people and governments should behave within markets.
What is economics?
Adam Smith ,known as the Father of Economics established the first modern economic theory. called the Classical School in 1776. Smith believed that people who acted in their own self-interest produced goods and wealth that benefited all of society. He believed that governments should not restrict or interfere in markets because they could regulate themselves and, thereby, produce wealth at maximum efficiency. Classical theory forms the basis of capitalism and is still prominent today.