Class Notes 9/30

1. Hume - Wealth is a country's command of resources and access to goods and services, not the amount of gold they have.

2. Trade is important because:

(a) Competition

(b) Imitation, Learning

(c) Division of Labor

3. For a country to have a chance for success, according to Adam Smith, they needed:

(a) Rights to property

(b) Division of Labor

(c) Exchange is peaceful and mutually agreed

(d) Honesty; no special privilege

4. Adam Smith - Wealth is the ability to produce and exchange goods and services.