GEOG 1280 Lecture Notes - Lecture 51: The Dismal Science, Invisible Hand, Economic Equilibrium
17 May 2017
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Document Summary
Economic geography is the study of the location, distribution and spatial organization of economic activities across the earth. The branch of geography concerned with the production and distribution of commodities. Therefore, economic geography is concerned with ideas about the location of economic systems. Adam smith (1723-1790) was a moral philosopher, wealth of nations o supply and demand closely linked. Market equilibrium or invisible hand occurs where supply=demand o. Free enterprise capitalism: invisible hand of the market determines supply and demand. Natural wage set by costs of subsistence what is the minimum you would accept to be paid (cost of subsistence). If paid less than this, you don"t have enough to live. If a country could produce everything more efficiently than another country, it would reap gains from specializing in what it was best at producing and trading with other nations. Wages were determined by scarcity and the costs of subsistence.
