An Analyze of Smith's Wealth of Nations

Topics: National accounts, Employment, Adam Smith Pages: 3 (907 words) Published: April 7, 2013
Nevroz Dilan TANAL
Adam Smith- Wealth of Nations Analyze

Ch. 1:Of the Division of Labour
-The great improvement in the productive powers of labour have caused the division of labour.(7) -With the division of labour, nations have the three main advantages such as increasing in dexterity, saving of time, and increased inventions of machines.(11) Ch. 2:Of the Principle Which Gives Occasion to the Division of Labour -Division of labour is not a practice which is invented intentionally by human wisdom; it is rather a result of the inclination of human nature to exchange one thing for another.(17) -However, not exchanging due to the benevolence of people for each other, it is because of their regard to their own interest.(18) -Exchange for their self-interest makes people specialize, therefore use the division of labour.(19) -How people specialize in a specific labour is not so much determined by their natural talents but rather determined by habit, custom, and education.(19-20) Ch. 3: That the Division of Labour is Limited by the Extent of the Market -The greater the extent of the market, there will be the more occasions for people to exchange; and it leads to the greater division of labour. (21) -With water-carriage, market size grows much more, that’s why the first developing settlements were near the sea-cost or navigable rivers.(22-23) Ch. 4:Of the Origin and the Use of Money

-Bartering was not enough in practicing exchange relations because the commodities that people wanted to exchange couldn’t have equal value.(26) -It was necessary to choose one commodity as money.(26)

-Metals have eventually become the main commodity as money because of its durability and divisionability.(27) -Money has become in all civilized nations the universal instrument of commercial activity.(27) -There are two types of value in terms of exchanging goods: 1.Value in use, means the utility of a good,...
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