- 01Pin-Making as a Model of Specialization
- 02Manufacturing Versus Agricultural Division of Tasks
- 03Dexterity, Time Saving, and Machinery
- 04Philosophy and the Subdivision of Employment
- 05Universal Opulence from Specialized Production
The Wealth of Nations
by Adam Smith · 1776 · 32 chapters · 24/7 tutor
Markets, specialization, institutions, and growth.
32Chapters
32Lessons
158Topics
Certificate of completion included
This course was produced by Cavua from a public-domain text.
Skills this course leaves you with.
- Explain how division of labour increases productivity and depends on market size
- Analyze how prices, wages, profits, rent, and interest are determined in an economy
- Describe the role of money, capital accumulation, and capital allocation in economic growth
- Evaluate the effects of mercantilism, tariffs, subsidies, treaties, and colonies on trade
- Compare different theories of national wealth, including agrarian and commercial systems
- Assess the contributions of towns, commerce, and institutions to long-term opulence
About The Wealth of Nations.
The Wealth of Nations (1776) is Adam Smith's long inquiry into why some countries grow rich: wealth, he argues, is what a nation's people produce, and it grows through the division of labor, the accumulation of capital and wide, free markets. Its five books move from production and prices, to capital, to economic history, to a critique of mercantile policy, to what government should do and how it should be paid for. Read the Introduction and Book I closely, then read selectively, tracking the places where Smith qualifies his own case.
Adam Smith (1723–1790) was a Scottish moral philosopher who taught at the University of Glasgow and made his name with The Theory of Moral Sentiments (1759), a book on ethics. In the 1760s he traveled in France as tutor to the young Duke of Buccleuch and met French economic thinkers, including François Quesnay. An Inquiry into the Nature and Causes of the Wealth of Nations, published in London in 1776 in two volumes, was the result of roughly a decade's work, and Smith revised it through several editions before his death.
It is often called the founding work of modern economics because it pulled ideas about production, prices, money, capital, trade and taxation, which earlier writers had treated piecemeal, into one system. Its central argument, that a nation grows rich by increasing what its people produce and that free exchange in a wide market drives that growth, still frames arguments over trade, regulation and government. People on very different sides of those arguments cite Smith, which is a good reason to read what he actually wrote.
What the book is really about.
Five arguments carry the book. Each is anchored in a specific passage, and essays on Smith are stronger when they cite the passage rather than the reputation.
Questions to ask as you read.
- 1The pin factory multiplies output; what does Book V say the same division of labor does to the workers who perform it?
- 2Does the butcher-and-baker passage claim people are purely selfish, and how does The Theory of Moral Sentiments complicate that?
- 3Why does Smith insist that wealth is annual produce rather than gold and silver?
- 4What exactly is the invisible hand doing in Book IV, chapter 2, and how far can the image fairly be stretched?
- 5Why is Smith so suspicious of merchants and manufacturers?
- 6How does he justify the Navigation Acts, given his general case for free trade?
- 7Is the distinction between productive and unproductive labor still useful?
- 8What does Book III's account of an "unnatural and retrograde" order of development say about his view of history?
- 9Which public works and institutions does Smith think the market will not supply, and why?
- 10Would Smith recognize the free-market economics often attributed to him?
Curriculum
The full table of contents.
Every chapter, every lesson, every topic — laid out before you enroll. Click any chapter to expand it.
- Chapters
- 32
- Lessons
- 32
- Topics
- 158
- 01The Propensity to Truck, Barter, and Exchange
- 02Self-Interest in Everyday Market Transactions
- 03How Exchange Creates Occupational Specialization
- 04Natural Talents and the Effects of Custom
- 05Common Stock and Mutual Benefit Among Workers
- 01Why Small Markets Restrict Specialization
- 02Village Self-Sufficiency in Remote Regions
- 03Water-Carriage and the Expansion of Trade
- 04Mediterranean Navigation and Early Civilization
- 05Egypt, Bengal, and China as Early Commercial Regions
- 01The Inconvenience of Direct Barter
- 02The Search for a Common Measure of Value
- 03Money as the Universal Instrument of Commerce
- 04Metal Coinage and Standardized Payment
- 05The Historical Development of Monetary Exchange
- 01Real Price Versus Nominal Price
- 02Labour as the True Measure of Exchange Value
- 03Money as an Unstable Measure of Value
- 04Corn Prices and Long-Term Value Comparisons
- 05Silver, Gold, and the Changing Value of Money
- 01The Three Natural Components of Price
- 02Wages as the Reward of Labour
- 03Profit as the Return on Stock
- 04Rent as Payment for Land Use
- 05How Market Price Covers the Whole Annual Produce
- 01The Natural Price of Commodities
- 02Market Price Fluctuations from Supply and Demand
- 03Effectual Demand and the Ordinary Rate of Profit
- 04Monopoly Prices and Scarcity Rents
- 05Competition as the Regulator of Market Price
- 01Demand for Labour and the Price of Subsistence
- 02The Lowest Class of Labourers and Survival Wages
- 03Variations in Wages by Employment and Risk
- 04Custom, Necessity, and the Standard of Living
- 05Wages in Manufacturing Districts and Labourer Well-Being
- 01Competition and the General Rate of Profit
- 02Profit Differences Between Countries
- 03Interest, Risk, and the Borrowed Capital Premium
- 04Profits in Retail, Wholesale, and Foreign Trade
- 05Why Profits Vary by Employment and Circumstance
- 01Compensating Differences in Wages and Profits
- 02Town and Country Wage Differences
- 03Education, Apprenticeship, and Labour Mobility
- 04Poor Laws and the Regulation of Labour Markets
- 05Occupational Risk, Prestige, and Remuneration
- 01Rent as the Price of Land Use
- 02Fertility, Situation, and Differential Rent
- 03Special Crops and High-Rent Gardens
- 04Corn as the Principal Produce of Land
- 05Coal Mines, Stone Quarries, and Other Extractive Rents
- 01Stock for Immediate Consumption and for Profit
- 02Fixed Capital and Circulating Capital
- 03Tools, Materials, and Wages as Capital Uses
- 04The Revenue Replaced by Productive Stock
- 05Capital as the Basis of Ongoing Production
- 01Money as a Circulating but Unproductive Asset
- 02Paper Money and the Economy of Coin
- 03Banking Operations and the Use of Notes
- 04Banking Excesses and Financial Instability
- 05The Cost of Maintaining a Monetary System
- 01Parsimony as the Immediate Cause of Capital Growth
- 02Productive Labour Versus Unproductive Labour
- 03The Annual Produce and the Maintenance of Labourers
- 04Capital Accumulation Through Frugality
- 05How Consumption and Waste Reduce Capital
- 01Stock Lent at Interest as a Distinct Use of Capital
- 02The Borrower’s Risk and the Lender’s Security
- 03Competition Among Borrowers and Lenders
- 04The Natural Rate of Interest
- 05Interest as a Share of Annual Produce
- 01Wholesale Trade and the Replacement of Capitals
- 02Home Trade, Foreign Trade, and the Carrying Trade
- 03Capital Allocation by Expected Profit
- 04The Relative Advantage of Domestic Employment
- 05How Merchants Choose Among Competing Uses of Capital
- 01The Natural Order of Economic Development
- 02Agriculture Before Manufacture and Commerce
- 03Town Growth Following Rural Improvement
- 04How Capital Follows the Course of Profit
- 05Opulence as the Result of Gradual Improvement
- 01Feudal Tenure and the Condition of Villanage
- 02Irregular and Oppressive Public Taxes
- 03The Burdens of Medieval Landholding
- 04Why Agriculture Advanced Slowly After Rome
- 05The Social Structure of the Ancient European Countryside
- 01Chartered Privileges and Urban Liberties
- 02Town Industry and the Rise of Manufactures
- 03The Growth of Spitalfields and Textile Production
- 04Urban Independence from Feudal Lords
- 05How Towns Became Centers of Trade and Craft
- 01Town Merchants as Buyers of Rural Produce
- 02The Spending Power of Urban Residents
- 03Landlords, Farmers, and the Influence of Town Demand
- 04The Stability of Commercial Improvement
- 05How Urban Trade Raises Agricultural Productivity
- 01Wealth as Bullion and Trade Surplus
- 02Import Restrictions and Export Encouragement
- 03Money, Plate, and the Balance of Trade
- 04Drawbacks, Bounties, and Commercial Policy
- 05The Mercantile System’s Assumptions About National Gain
- 01Import Bans on Goods That Can Be Made at Home
- 02The Effects of Free Trade on Domestic Employment
- 03Mercantile Arguments for Restriction
- 04Consumer Prices and the Cost of Protection
- 05How Domestic Monopoly Shapes Trade Policy
- 01Extraordinary Restraints on Disadvantageous Trade Partners
- 02Coin, Bullion, and the Measurement of Trade Balances
- 03Banking, Paper Currency, and Foreign Payments
- 04Colonial and European Trade Imbalances
- 05How Balance-of-Trade Doctrine Shapes Policy
- 01Drawbacks as Refunds of Duties on Re-exportation
- 02Encouraging Trade Through Duty Rebates
- 03The Limits of Drawback Policy
- 04How Drawbacks Support Merchants and Manufacturers
- 01Bounties as Export Incentives
- 02How Subsidies Alter Foreign Market Prices
- 03Bounties and the Domestic Price of Goods
- 04Corn Bounties and Agricultural Trade
- 05The Policy Costs of Export Subsidies
- 01Treaties That Bind Tariffs and Market Access
- 02Most-Favoured-Nation Clauses and Reciprocity
- 03Treaties, Coinage, and Banking Arrangements
- 04How Treaties Affect National Trade Policy
- 01Motives for Establishing New Colonies
- 02The Prosperity of Settler Colonies
- 03Colonial Government and Public Expenses
- 04Monopoly Trade Between Colony and Mother Country
- 05The Strategic and Commercial Value of Colonies
- 01Mercantile Monopoly and National Power
- 02Colonial Trade and the Burden of Defence
- 03The Limits of Exclusive Trading Companies
- 04Bounties, Materials, and Manufacturing Policy
- 05Why Mercantile Policy Fails to Increase Real Wealth
- 01The Economists and the Agricultural System
- 02Land as the Sole Source of Net Produce
- 03Critiques of Agricultural Exclusiveness
- 04Water Distribution and Agricultural Productivity
- 05Why Manufacturing and Commerce Also Create Value
- 01Defense and the Maintenance of Armies
- 02Justice, Police, and the Administration of Law
- 03Public Works and Institutions for Commerce
- 04The Expense of Sovereign Functions
- 05Government as Provider of Security and Infrastructure
- 01The Revenue of the Sovereign and the Commonwealth
- 02Fees, Tolls, and User Charges
- 03Public Schools, Universities, and Institutional Funding
- 04Church Revenues and State Support
- 05Taxes on Land, Houses, Profits, Wages, and Consumption
- 01The Growth of Public Debt Through War Finance
- 02Funding Systems and the Annual Charge of Debt
- 03The Effects of Debt on State Power and Credit
- 04Debt, Colonial Revenue, and Imperial Finance
- 05Why Public Debt Threatens Long-Term Prosperity
01How many chapters are in the Wealth of Nations course?
The Wealth of Nations course has 32 chapters, each with its own lessons and topics.
02How many lessons are in the Wealth of Nations course?
There are 32 lessons across the course, and you can ask your 24/7 tutor about any of them.
03Can I see what the Wealth of Nations course covers before I start?
Yes. The full curriculum is listed on this page, beginning with "CHAPTER I. OF THE DIVISION OF LABOUR.".
04Do I get a certificate for the Wealth of Nations course?
Yes. Finishing the course earns a personal Cavua certificate of completion.
Keep exploring
View all EconomicsMore in Economics.
Cavua Seed Library
The Theory of the Leisure Class
EconomicsIntermediate
14chapters7h 6m
This course was produced by Cavua from a public-domain text.
With membership
Or preview chapter 1 free
Updated Oct 2026
Cavua Seed Library
The Economic Consequences of the Peace
EconomicsAdvanced
5chapters4h 42m
This course was produced by Cavua from a public-domain text.
With membership
Or preview chapter 1 free
Updated Oct 2026
Cavua Seed Library
Principles of Political Economy and Taxation
EconomicsIntermediate
31chapters7h 54m
This course was produced by Cavua from a public-domain text.
With membership
Or preview chapter 1 free
Updated Oct 2026
Learn with AI
Ready to start this course?
Create your account to enroll, talk to your 24/7 tutor, and track your progress — across every device.