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