Question

What are smith's three productive orders? What political roles does he assign these orders? (AP EURO)

Answer 1

Adam Smith´s three productive orders are:

1. Labor

2. Stock

3. Land

Smith states that these factors of production are moved by forces, that tend to find an equilibrium in market. The political role in this factors of production, is that government regulation disrupts this balance. Wages are controlled by supply and demand but also by political influences.