I. - Theory of ADAM SMITH and the wealth of nation.

He pointed out:

- a country will grow economically if people accumulate capital via domestic savings ang gains from
trade.

- the wealth of a nation is its enterprice development, labor productivity, and capital formation.

LAISSEZ FAIRE- free enterprise prevails.

II. - DAVID RICARDO and the limits of growth.

- according to D. Ricardo, the economy will continue to grow for as long as people worked the land of
profitable basis.

The limit is the DIMINISHING available land area.