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The Wealth of Nations

Study Questions

The following questions are offered to you as an optional guide to enhance your textual

understanding of the text. If at any point you feel totally drawn into the world of Rousseau and

prefer not to stop at each step to read yet another study question, do feel free to do so.

Introduction and plan of the work (para. 1-5)

1. What makes the necessaries and conveniencies of life possible for a

person and the nation?

2. What is Smith curious about the dierence between poor and rich

nations?

Book I

Chapter I, para. -!1. Smith proposes that division of labor contributes to improving the

productive powers of labour. What eamples has he given to illustrate this

observation?

2. !oes agriculture or manufacture bene"t more from the division of labor?

Wh#?

Chapter I, para. 1"-1

1. What are three advantages of division of labor?

2. What is Smith$s idea regarding the life of each workman as division of

labor is applied?%. &ow are the laborers related to each other in division of labor' as (oint

labor?

). What is similar about the situation of the meanest person in a civili*ed

countr# and the industrious and frugal peasant? What point is Smith

making b# bringing them together?

Chapter II, para. 1#-$1

1. Smith proposes that the division of labor is a natural human propensit#.

&ow does he make his argument?

2. What is the result on the individual life when he addresses his owninterest?

%. What conclusion has Smith made regarding the human wa# of making

use of the dierence of talents? &ow would #ou describe the ideal he is

looking up to?

Chapter III, para. $$-$5

1. +he si*e of the market is the ke# issue that Smith is eploring in these

several paragraphs. What is it about the market interests Smith?

2. What is Smith$s view on towns as markets?

%. What is Smith$s evaluation on the dierence between water,carriage andland,carriage as means of epanding markets?

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Chapter III, para. $-$!

1. &ere' Smith etends the idea of the market to the histor# of civili*ation.

What' for Smith' distinguish a civili*ed state from an uncivili*ed one?

2. What eamples does he give to show the development of civili*ations are

closel# linked to commerce?

Chapter I%, para. &"-

1. What does Smith mean b# a commercial societ#? What are its features'

and what is the role of each individual?

2. What eamples has Smith given regarding the common instrument of

commerce in human histor#?

%. -f all these instruments' Smith notes that metal has been preferred. Still'

what ma# be its disadvantages?

). What is the solution to the disadvantages?

Chapter I%, para. &'-&

1. What does value in use and value in echange mean?

2. What issues does Smith want to investigate in terms of value?

Chapter %, para. -'

1. Wh# is labour the real measure of the echangeable value of all

commodities?

2. &ow then does Smith etend this idea to his de"nition of wealth?

%. Smith also notices the dicult# in maintaining this de"nition. Wh#?

). /easuring labor is dicult. What solution has Smith proposed?

Chapter %, para. !-5$

1. What makes mone# a better measure of labor value? 0nd better than

what other instruments?

2. !espite mone# as the common measure' Smith observes that the value

of labor ma# still var#. 0ccording to what factors does Smith think it var#?

%. What is the result of this var#ing value on the price of labor?

Chapter %I, para 5&-55

1. Smith begins this chapter b# making the point that the value of labor isnot often reected in its price. n what contet does he propose the

argument?

Chapter %I, para 5-$

1. n the advanced state of societ#' what are the three components that the

value of labor separated into?

2. What dierent principles do these components operate on?

%. 3rom the point of view of the labourer' how does his eperience change?

Chapter %II, para &-'1. What does Smith mean b# the natural price? What components is it made

up of?

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2. What does this natural price mean to the person selling the commodit#?

Chapter %II, para !-##

1. What is the market price? What is it regulated b#?

2. &ow do the 4uantit# of a commodit# brought to market and the eectual

demand aect its price? Which three scenarios does Smith present?

%. !oes Smith think that the components in the price of a commodit#

respond evenl# to changes in the 4uantit# of a commodit# brought to

market and the eectual demand?

). What conclusion does Smith draw regarding the dierence between the

market price and natural price of a commodit#?

Chapter %II, para #'-!"

1. While Smith believes the market price of a commodit# naturall#

gravitates towards the natural price' it is also possible it does not. What

factors ma# keep the market price up above the natural price?

2. What is Smith$s evaluation of trade secrets and monopol#? What impact

do the# have on the price of commodities?

%. What kind of power does Smith compare the enhancement of market

price with?

). 5nder what circumstances would the wages sink below the natural

price??

Chapter %III, para !1-1"

1. What factors change the original wa# that labor belongs to the laborer to

the reduction of wage?2. What kind of relation does the laborer have with his master?

%. &ow much power do the workmen have towards maintaining and even

raising their wages' compared to their masters?

). &aving evaluated the behavior of masters and workmen' what does Smith

suggest to be the suitable level of wages?

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