Who is the founder of modern economics and author of The Wealth of Nations?

• A. Karl Marx
• B. Adam Smith
• C. John Maynard Keynes
• D. David Ricardo

Answer: (B)

The main idea here is recognizing who is considered the founder of modern economics and author of The Wealth of Nations. Adam Smith is that figure, widely regarded as establishing modern economic thought. In The Wealth of Nations, he explains how division of labor boosts productivity and how competition and voluntary exchange help resources flow to their most valued uses. He also introduces the idea that individuals pursuing their own interests can, through market processes, benefit society as a whole—a concept often described as the invisible hand. This approach marked a shift from mercantilist ideas to analyzing how prices, production, and trade arise in free markets with limited government intervention. While Karl Marx, John Maynard Keynes, and David Ricardo made important contributions in their own contexts, Smith is the one most closely associated with founding modern economics and authoring The Wealth of Nations.