The Wealth of Nations

A 1776 book by Adam Smith examining the causes of national prosperity and laying foundations for classical political economy.

Division of Labour: The separation of production into specialized tasks performed by different workers. Smith opens with the pin factory to show how specialization raises productivity.
Capital Accumulation: The growth of productive assets through saving and investment. Smith treats accumulated capital as a condition for expanding the division of labor.
Adam Smith: A Scottish philosopher and political economist who published The Wealth of Nations in 1776. Smith developed the book’s account of markets, production, taxation, and public duties.
Classical Economics: An economic tradition that analyzes production, distribution, and growth, associated with Smith, Ricardo, and their successors. The book helped establish the questions and framework of classical political economy.
Invisible Hand: A metaphor for unintended social coordination arising from individuals pursuing their own interests. Smith uses the phrase to describe one way private choices can advance public outcomes.
Economic Growth: An increase over time in the production of goods and services in an economy. The book asks what causes sustained increases in a nation’s output and prosperity.
The Theory of Moral Sentiments: Adam Smith’s 1759 book explaining moral judgment through sympathy and the impartial spectator. It provides the moral-philosophical context for Smith’s later study of commercial society.
Laissez-Faire: An economic policy principle favoring limited government intervention in markets. Smith’s criticism of mercantile controls became associated with arguments for freer markets.
Market Price: The price at which a good is actually exchanged in a market. Smith distinguishes the market price from the price around which it tends to gravitate.
Comparative Advantage: The ability to produce a good at lower opportunity cost than another producer. Smith’s case for exchange and specialization anticipates later arguments about gains from trade.

Linked from 17 pages