ECON 307

In Class Exercise Seven - Smith (Introduction and the Theory of Moral Sentiments)

1.  Why might Smith be considered a "conservative"?

2.  What does Smith mean by an "invisible hand" with respect to a moral order? How do "passions" for wealth and status relate here?  Where do these passions come from?

3.  Beginning with having sympathy for others, Smith says that we are able to form moral judgments.  What is his process of forming these judgments?  Do you think it is a good theory?  Why or why not?

4.  Any other questions on this material?