Smith's Analysis of Markets and Policy Conclusions 38
Natural order, harmony, and laissez faire The working of
competitive markets Capital and the capitalists The impact of
Smith on policy
The Nature and Causes of the Wealth of Nations 44
Causes of the wealth of nations Productivity of labor Productive
and unproductive labor Summary of the causes of the wealth of
nations
Value Theory 50
Relative prices The meaning of value Smith's theories of
relative prices Labor cost theory in a primitive society
Assumptions of the model Labor command in a primitive society
Labor theory in an advanced economy Cost of production theory of
relative prices
Distribution Theory 60
Wages Profits Rent
The Rate of Profit over Time 63
Welfare and the General Level of Prices 63
Chapter V, Book 1
Summary and Conclusions 66
Suggested Readings 67
3 RICARDO AND MALTHUS 69
The Malthusian Population Doctrine 72 _—
Population theory as an intellectual response to the problems of the
The population thesis
David Ricardo 76
A theorists theorist
according to Ricardo
Ricardo’s method
Ricardo’s Model 78
An overview The problem of the times— the Corn Laws
Analytical tools and assumptions
Ricardo’s Theory of Land Rent 83
Diminishing returys Rent viewed from the product side Rent
viewed from the cost side A more general view of the concept of rent
I'he taxation of land—a digression
Ricardo’s Value Theory 90