. Definitions: o Division of Labour (/4) Division of Labour is the concept invented by Adam Smith. o Law of Accumulation (Adam Smith] o Comparative Advantage (David Ricardo) . Free-trade (Adam Smith) O Spontaneous Order (Hayek) . Adam Smith ['invisible hand") Discuss importance of knowledge -> PRICES o Entrepreneurship (Schumpeter] . 'creative destruction" . Relationship between principle of scarcity and opportunity cost O Resources are limited, but our wants and needs are unlimited, and therefore we have to ECONOMIZE Opportunity cost means in order to gain something, you lose something - but what is limited? TIME . Compare and contrast ideas of ADAM SMITH and KARL MARX . Economic 'pessimism' of THOMAS MALTHUS o Food and population