ADAM SMITH is the father of modern Economics.
Smith is also known for creating the concept of gross domestic product (GDP) and for his theory of compensating wage differentials.

Who is the Father of Economics?
The title "Father of Economics" is commonly attributed to Adam Smith, a Scottish philosopher and economist. His seminal work, "The Wealth of Nations," published in 1776, laid the foundation for classical economics and introduced key concepts that continue to influence economic thought today.
Key Contributions of Adam Smith:
- Invisible Hand: Smith introduced the idea that individuals seeking their self-interest inadvertently contribute to the overall economic well-being of society. This metaphor of the "invisible hand" illustrates how personal gain can lead to societal benefits.
- Division of Labor: He emphasized the importance of specialization and division of labor, which enhances productivity and efficiency, a principle that remains a cornerstone of modern economics.
- Free Market Economy: Smith advocated for a laissez-faire approach, arguing that minimal government intervention allows for a more efficient allocation of resources through market dynamics.
- Value Theory: He differentiated between "value in use" and "value in exchange," laying the groundwork for later economic theories regarding price and value.
Importance of Adam Smith in Economics Education:
Understanding Adam Smith's contributions is crucial for students studying economics. His ideas provide a fundamental framework for analyzing economic systems and policies.
In the context of NCERT Solutions for Class 11 Statistics for Economics, students are encouraged to explore:
- Basic Economic Concepts: Grasping foundational concepts can help in understanding complex theories.
- Statistical Tools: Learning how to apply statistics in economics enables better analysis and interpretation of data.
By studying Smith's influence alongside statistical methods, students gain a comprehensive view of economic principles that shape our world today.