Writing Assignment on Adam Smith, Wealth of Nations, Book I, Chapters 1, 2, 3

The questions below will help you to understand the first three chapters of Adam Smith’s famous
book, in which he laid out the concept of the division of labour, its origin in human ability to
exchange, and its consequences: specialization and wealth. The answers to the questions are
tentative and meant to help you to understand the chapters. They provide you with key insights into
the text containing the main ideas, which will help to study for the exam. You should remember that
the society Adam Smith lived in was in some aspects quite different from ours. This is the reason that
his view on certain aspects is somewhat different from ours. For example does Adam Smith explain in
his own way how talent comes about and how import it is to have a port; today we might have a
different take on these things. You should remember though that in the 18th century, society was
much more unequal than it is today and industrialisation was rather primitive and analogue.

Chapter I

1. According to Smith, in which way does the division of labour lead to additional production?
What are the benefits of the surplus?

Chapter II

2. What ability that humans have, according to Smith, makes it possible for our species to
benefit from division of labour ?
3. According to Smith, in which alternative way could means could people get others to do
what we want them to do? Why can we not use this principle effectively, instead of the
principle of exchange?
4. What is Smith’s view of differences in talents between different people?
5. Explain how a society that develops according to Smith’s theory becomes strongly
interdependent.

Chapter III

6. Why does the extent of the market limit the division of labour, according to Smith?
7. Which ideas discussed in chapter 1 and 2 of Cowen and Tabarrok go back on these primary
ideas of Adam Smith?

Adam Smith, a Scotchman, as an inhabitant of Great Britain was a keen observer of the Island’s
economic (and other) development. His theory of the creation of the wealth of nations rested firmly
on trade. How, do you think, would Smith have perceived the recent Brexit? Its negative effects on
trade, probably would have concerned Smith greatly, don’t you think? What effects may the
distancing of Britain from the European Union, for example in the form of trade barrier, have on
overall production surplus, you think? Who, do you think, would be affected most by those negative
effects of the Brexit? How do the effects of a trade barrier affect the production surplus of Great
Britain and the European Union? Will Britain be affect most or the European Union? Do you have a
sense of the potential size of such effects? What are the effects of the possibility of large
corporations moving their headquarters? What about people moving?

Below you will find some pointers that will help you to structure the essay:
Structure of the essay

Step 1: The introduction

• Describe briefly the issue you will discuss in your essay.

• Which aspect of the theory of Smith will be applied? Try to describe this in one or two
sentences.
• Which question will you answer in your essay? Find the main question in the assignment
description above.

Step 2: The analysis

• In analysis you give all arguments that are relevant in this particular issue. This should
concern arguments that support a certain viewpoint and arguments that oppose it. Your
arguments should clearly be linked to the work of Smith, e.g. which facts would Smith
present to support the position that Britain will be affected most and which that the
European Union will suffer the largest blow? How would he explain these facts? Use the
concepts from chapters 1-3 of Smith’s work. Your arguments should solely focus on the
economic issue; the political motives that have led not Brexit are not relevant for your essay!

Step 3: The conclusion

• In the conclusion you should state the main arguments and weigh them up the main: argue
why the arguments that the European Union will suffer most outweigh the arguments that
Britain will suffer most or vice versa. In the conclusion it should become clear why you take a
certain stand.

Reference

Smith, A. (1776). The Wealth of Nations. Hoboken (New Jersey): John Wiley and Sons, Ltd

An essay is a formal text. That means that your tone of voice should be concise and to-the-point. Be
as factual as possible and avoid biased language. Always check your text before you hand it in. The
deadline for your text is always on Sunday before 23.59, but of course, if you want to hand it in
before the deadline, you can. Be aware that this is an individual assignment: you are not allowed to
do the assignment together. Plagiarism will always be reported to the Examinations Board and will
have serious consequences!

Requirements

• Length essay: 700 words (10% deviation allowed); write down the word count at the end of
the document (title and reference list are not included in the word count)
• Use in-text references (APA style as explained in the video on Canvas)
• Make a reference list (APA style as explained in the video on Canvas)
• Language: English (international groups)/ Dutch (Dutch groups)
• Font: Time New Roman 11
• Line Spacing: 1,5
• Indent whenever you start a new paragraph
• Your text should have an appropriate title: short and it should make clear what your text is
about. The title is never the same as your central question!
• Name and student number (below the title)
• Deadline: Upload assignment on Canvas before Sunday 6 September 23.59.

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