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What you have calculated (based on Smith's data) is the ratio of the money price of wheat in Smith's time to its price in the time of Edward III (14th century). The same result could be obtained more directly by dividing the former (28 shillings per quarter) by the latter (6 shillings and 8 pence per quarter) (see note). From the extract (and ignoring the ...


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Smith was talking of "the price of work" as meaning the price of economic products bought from the employers and merchants, not the price of labour bought from the workers. "Work" had this dual meaning historically, referring to both the activity of work and the result of work, whereas nowadays the latter meaning tends to be qualified (...


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The term "equality of condition" can also be thought of as "equality of outcome." In this context, it refers to the idea that people in a society/state have approximately the same overall quality of life, regardless of opportunity, socioeconomic circumstances, prejudicial treatment, advantages/disadvantages, etc. This is an oversimplification but, to put ...


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This (paraphrase) appears in Book III, Chapter IV of The Wealth of Nations. Smith is discussing how, in his opinion, towns engaged in commerce and manufacturing have contributed to the improvement and cultivation of their country. Specifically, the quote appears in the context of a discussion about feudalism, and kings being unable to control the violence of ...


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Taken literary the passages do not hold up, but the passages also have to be read in the context they were written. An important caveat is that Adam Smith actually did not propose any explicit theory of wage growth rather the above quotes are observations he made at the time of the writing (at least I think that the passages when read in the context of the ...


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Adam Smith did not used all the terms necessarily in exactly the same way as we use them today, so we have to defer to his explanations in Wealth of Nations. Nominal and Real Price Let's start with real and nominal price. First Adam Smith introduces these terms in chapter V which is literally called Of the Real And Nominal Price of Commodities, or their ...


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Сельскохозяйственные продукты могут, в виде правила, поступать на рынок только в таком количестве, чтобы обычная цена их была достаточна для возмещения капитала, необходимого для доставления их туда, и для оплаты обычной прибыли. This is the same place, but from Russian translation of the book. Here "stock" was translated as "капитал", ...


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Smith just states that in autarky country can only enjoy as much goods and services as it itself can produce, which does not hold for trading nations (which can enjoy more goods and services trading together that each country can individually produce). I guess to understand the passage one should understand the concept of absolute advantage (which Smith ...


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tl;dr Your description of an invisible hand is a straw man, and academic literature typically avoids straw man ideas. When it comes to proper non-strawman version of the invisible hand argument there are several interpretations of the invisible hand in the literature as describing: First Fundamental Theorem of Welfare Economics. For derivation and ...


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As I read Smith this was because gold and silver were used as currencies. So in Smith’s view you do not earn profit on settling your accounts you earn profit on resale of what you imported or from returns on the investment you bought with your gold. E.g. if you buy widget from China and sell it in the US is your profit derived from sending dollars to the ...


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This is not really an economics question David Hume "by far the most illustrious philosopher and historian of the present age" who Adam Smith appears to be quoting here, is saying that paying priests of the established church a state salary would reduce their incentives to be undesirably active, in contrast to a unsubsidised competitive market for ...


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