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Wealth of Nations

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In the first three chapters of the Wealth of Nations, Smith presents a simple, powerful model of the determinants of wealth creation. Smith explains the creation of wealth as an outcome of the interaction of the division of labor, human nature, and the growth of the market. Explain and critically examine his analysis. In addition, explain Smith’s views on the rise of the modern world contained in his theory of the progress of opulence in Book III of the Wealth of Nations. Which parts of Smith’s analysis do you think Marx would reject? Explain.



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