--- ENTITY: real price of commodities ---

# Real Price of Commodities

## Definition

The intrinsic value of commodities measured by the quantity of labour required to acquire them, representing the actual toil and trouble that must be undergone to obtain them. This differs from nominal price, which is measured in money terms.

## Source Chapter

Book I, Chapter 5

## Context

Smith's central distinction in this chapter, arguing that labour is the real measure of exchangeable value while money serves only as a nominal measure. He explains that real price reflects the actual effort required to produce or acquire goods.

## Economic Domain

Exchange

---
--- ENTITY: nominal price of commodities ---

# Nominal Price of Commodities

## Definition

The price of commodities expressed in monetary terms rather than in the quantity of labour required to acquire them. This represents the conventional market price measured in currency rather than the underlying real value.

## Source Chapter

Book I, Chapter 5

## Context

Smith contrasts nominal price with real price, explaining that while labour is the true measure of value, people commonly estimate prices in money because it is more convenient and easier to understand than abstract labour measures.

## Economic Domain

Exchange

---
--- ENTITY: price in labour ---

# Price in Labour

## Definition

The measurement of a commodity's value by the quantity of labour it can command or purchase, representing the amount of work that can be obtained in exchange for the commodity. This is Smith's formulation of real price.

## Source Chapter

Book I, Chapter 5

## Context

Smith introduces this concept as one of two ways to price commodities, contrasting it with price in money. He argues this is the more fundamental measure of value because labour was the original purchase money for all things.

## Economic Domain

Exchange

---
--- ENTITY: price in money ---

# Price in Money

## Definition

The measurement of a commodity's value by the quantity of money it commands in exchange, representing the conventional market price denominated in currency rather than in labour terms.

## Source Chapter

Book I, Chapter 5

## Context

Smith presents this as the more common but less fundamental way of pricing commodities, explaining that money became the standard measure because it is more convenient and comprehensible than labour measures.

## Economic Domain

Exchange

---
--- ENTITY: toil and trouble of acquiring ---

# Toil and Trouble of Acquiring

## Definition

The actual effort, hardship, and difficulty involved in obtaining commodities or wealth, which Smith identifies as the real cost of acquisition and the fundamental measure of value.

## Source Chapter

Book I, Chapter 5

## Context

Smith uses this phrase to describe what commodities really cost to the person who wants to acquire them, arguing that this toil and trouble is the true measure of value rather than the monetary price.

## Economic Domain

Exchange

---
--- ENTITY: command over labour ---

# Command Over Labour

## Definition

The power that wealth confers to direct and employ the labour of others, measured by the quantity of labour that can be purchased or commanded through the possession of commodities or money.

## Source Chapter

Book I, Chapter 5

## Context

Smith argues that a person's wealth is determined by the degree to which they can command the labour of others, making this concept central to his understanding of economic power and value.

## Economic Domain

Distribution

---
--- ENTITY: exchangeable value ---

# Exchangeable Value

## Definition

The worth of a commodity in terms of what it can be exchanged for in the market, determined by the quantity of labour it can command or purchase rather than by its utility or nominal price.

## Source Chapter

Book I, Chapter 5

## Context

Smith establishes this as the fundamental concept underlying his theory of value, arguing that labour is the real measure of exchangeable value while money is merely a nominal measure.

## Economic Domain

Exchange

---
--- ENTITY: measure of exchangeable value ---

# Measure of Exchangeable Value

## Definition

The standard by which the relative worth of different commodities can be compared and evaluated, which Smith argues is labour because it provides a universal and accurate basis for comparison.

## Source Chapter

Book I, Chapter 5

## Context

Smith develops this concept to explain how different commodities can be compared across time and space, arguing that labour provides the only accurate measure of value.

## Economic Domain

Exchange

---
--- ENTITY: real measure of value ---

# Real Measure of Value

## Definition

The fundamental standard that accurately reflects the true worth of commodities, which Smith identifies as labour because it represents the actual effort required to produce goods.

## Source Chapter

Book I, Chapter 5

## Context

Smith distinguishes this from nominal measures, arguing that labour provides the only accurate basis for comparing the value of different commodities across different times and places.

## Economic Domain

Exchange

---
--- ENTITY: nominal measure of value ---

# Nominal Measure of Value

## Definition

The conventional standard used to express the price of commodities, typically money, which provides a convenient but less accurate representation of true value compared to labour as the real measure.

## Source Chapter

Book I, Chapter 5

## Context

Smith explains that while money serves as the common nominal measure, it is less accurate than labour because the value of money itself fluctuates with changes in the value of gold and silver.

## Economic Domain

Exchange

---
--- ENTITY: fluctuations in value of gold and silver ---

# Fluctuations in Value of Gold and Silver

## Definition

The variations in the purchasing power and worth of precious metals over time, caused by changes in mine productivity, discoveries of new sources, and shifts in market conditions.

## Source Chapter

Book I, Chapter 5

## Context

Smith discusses how these fluctuations make gold and silver unreliable measures of value, using the discovery of American mines as a key example of how such changes can dramatically affect prices.

## Economic Domain

Exchange

---
--- ENTITY: market price adjustment ---

# Market Price Adjustment

## Definition

The process by which prices are determined through the higgling and bargaining of the market, adjusting according to supply, demand, and the relative difficulty of different types of labour.

## Source Chapter

Book I, Chapter 5

## Context

Smith describes this as the mechanism by which the market settles on prices that, while not perfectly accurate, are sufficient for carrying on the business of common life.

## Economic Domain

Exchange

---
--- ENTITY: higgling and bargaining of the market ---

# Higgling and Bargaining of the Market

## Definition

The process of negotiation and price discovery through which market participants adjust prices based on their perceptions of value, difficulty of production, and relative scarcity.

## Source Chapter

Book I, Chapter 5

## Context

Smith uses this phrase to describe how the market, through its natural processes of negotiation, arrives at prices that reflect the relative value of different commodities.

## Economic Domain

Exchange

---
--- ENTITY: legal tender ---

# Legal Tender

## Definition

The legally recognised form of payment that creditors must accept to discharge a debt, which Smith discusses in the context of different metals being designated as acceptable forms of payment.

## Source Chapter

Book I, Chapter 5

## Context

Smith examines how different societies have designated certain metals as legal tender and how this affects the distinction between standard and non-standard forms of money.

## Economic Domain

Regulation

---
--- ENTITY: seignorage ---

# Seignorage

## Definition

The difference between the value of money and the cost to produce and distribute it, which Smith discusses as a potential source of government revenue and a factor affecting the value of coin.

## Source Chapter

Book I, Chapter 5

## Context

Smith examines how seignorage affects the relationship between coin and bullion, and how it might be used to regulate the value of different metals in circulation.

## Economic Domain

Regulation

---
--- ENTITY: mint price ---

# Mint Price

## Definition

The official price at which the mint will coin bullion into currency, which Smith uses as a reference point for discussing the relationship between market prices and official valuations of precious metals.

## Source Chapter

Book I, Chapter 5

## Context

Smith uses mint price as a benchmark for comparing market prices of gold and silver, showing how market prices fluctuate around this official valuation.

## Economic Domain

Regulation

---
--- ENTITY: market price of bullion ---

# Market Price of Bullion

## Definition

The price at which gold and silver bullion actually trades in the market, which Smith shows fluctuates around the mint price based on supply, demand, and the quality of the coinage.

## Source Chapter

Book I, Chapter 5

## Context

Smith uses the relationship between market price and mint price of bullion to demonstrate how the quality of coinage affects the overall value of money in an economy.

## Economic Domain

Exchange

---
--- ENTITY: standard weight of coin ---

# Standard Weight of Coin

## Definition

The officially designated weight and fineness of precious metal that coins should contain, which Smith discusses as a crucial factor in maintaining the value and reliability of currency.

## Source Chapter

Book I, Chapter 5

## Context

Smith examines how deviations from standard weight, through wear and debasement, affect the accuracy of money as a measure of value and the overall stability of the monetary system.

## Economic Domain

Regulation

---
--- ENTITY: degradation of coin ---

# Degradation of Coin

## Definition

The process by which coins lose value through wear, clipping, or official reduction in their precious metal content, which Smith identifies as a major source of monetary instability.

## Source Chapter

Book I, Chapter 5

## Context

Smith discusses how degradation of coin affects the real value of money rents and contracts, using historical examples to show how this has reduced the value of fixed payments over time.

## Economic Domain

Regulation

---
--- ENTITY: corn rent ---

# Corn Rent

# Corn Rent

## Definition

A form of rent payment specified in terms of a quantity of grain rather than a fixed sum of money, which Smith argues preserves its real value better than money rents because corn prices are more stable over time.

## Source Chapter

Book I, Chapter 5

## Context

Smith uses corn rent as an example of how specifying payments in commodities rather than money can protect against the effects of monetary debasement and fluctuations in the value of precious metals.

## Economic Domain

Distribution

---
--- ENTITY: money rent ---

# Money Rent

## Definition

A form of rent payment specified as a fixed sum of money rather than in kind, which Smith argues is vulnerable to loss of real value through monetary debasement and fluctuations in the value of precious metals.

## Source Chapter

Book I, Chapter 5

## Context

Smith contrasts money rent with corn rent, showing how monetary payments can lose real value over time due to changes in the value of the currency.

## Economic Domain

Distribution

---
--- ENTITY: real value of corn rent ---

# Real Value of Corn Rent

## Definition

The actual purchasing power of a corn rent in terms of the labour or other commodities it can command, which Smith argues varies less over long periods than the nominal value of money rents.

## Source Chapter

Book I, Chapter 5

## Context

Smith uses this concept to demonstrate why corn rents preserve their value better than money rents, arguing that corn prices are more stable over long periods than the value of precious metals.

## Economic Domain

Distribution

---
--- ENTITY: average price of corn ---

# Average Price of Corn

## Definition

The typical or ordinary price of grain over time, which Smith identifies as a more stable measure than annual fluctuations and uses as a reference point for understanding long-term price trends.

## Source Chapter

Book I, Chapter 5

## Context

Smith discusses how the average price of corn is regulated by the value of silver and the cost of bringing it to market, using this to explain price stability over time.

## Economic Domain

Exchange

---
--- ENTITY: temporary price of corn ---

# Temporary Price of Corn

## Definition

The price of grain in any particular year, which Smith shows can fluctuate significantly from the average price due to temporary variations in supply and demand.

## Source Chapter

Book I, Chapter 5

## Context

Smith contrasts temporary with average prices to explain how short-term price fluctuations can be much larger than long-term trends, affecting the real value of different types of payments.

## Economic Domain

Exchange

---
--- ENTITY: value of silver ---

# Value of Silver

## Definition

The purchasing power of silver in terms of the labour or commodities it can command, which Smith shows varies over time due to changes in mine productivity and market conditions.

## Source Chapter

Book I, Chapter 5

## Context

Smith examines how the value of silver affects prices and the real value of money rents, using historical examples to show how its value has changed over time.

## Economic Domain

Exchange

---
--- ENTITY: value of gold ---

# Value of Gold

## Definition

The purchasing power of gold in terms of the labour or commodities it can command, which Smith discusses in relation to silver and shows varies with changes in mine productivity and market conditions.

## Source Chapter

Book I, Chapter 5

## Context

Smith examines how the value of gold relates to silver and other commodities, showing how changes in its value affect the overall monetary system.

## Economic Domain

Exchange

---
--- ENTITY: proportion between metals ---

# Proportion Between Metals

## Definition

The official or market-determined ratio at which different precious metals exchange for each other, which Smith discusses as a key factor in determining the relative value of different forms of money.

## Source Chapter

Book I, Chapter 5

## Context

Smith examines how the proportion between gold and silver affects their use as money and how official regulations attempt to establish stable ratios between different metals.

## Economic Domain

Regulation

---
--- ENTITY: standard metal ---

# Standard Metal

## Definition

The precious metal that serves as the primary basis for a nation's currency and value measurements, which Smith discusses in the context of how different societies designate different metals as their monetary standard.

## Source Chapter

Book I, Chapter 5

## Context

Smith examines how societies choose and designate standard metals, and how this choice affects their monetary systems and the measurement of value.

## Economic Domain

Regulation

---
--- ENTITY: non-standard metal ---

# Non-Standard Metal

## Definition

Precious metals that are used as money but are not the primary standard for value measurements, which Smith discusses in relation to how they function within monetary systems.

## Source Chapter

Book I, Chapter 5

## Context

Smith examines how non-standard metals function within monetary systems, particularly in relation to the designated standard metal.

## Economic Domain

Regulation

---
--- ENTITY: copper money ---

# Copper Money

## Definition

The lowest denomination of metallic currency, typically used for small transactions, which Smith discusses in the context of different metals serving different monetary functions.

## Source Chapter

Book I, Chapter 5

## Context

Smith examines how copper functions within monetary systems, particularly in relation to silver and gold as higher denominations of money.

## Economic Domain

Exchange

---
--- ENTITY: silver money ---

# Silver Money

## Definition

The primary medium of exchange in most commercial nations, which Smith identifies as the metal most commonly used for accounting and medium-sized transactions.

## Source Chapter

Book I, Chapter 5

## Context

Smith discusses how silver became the standard for most commercial transactions and accounting, examining its role in the monetary system.

## Economic Domain

Exchange

---
--- ENTITY: gold money ---

# Gold Money

## Definition

The highest denomination of metallic currency, typically used for large transactions and as a store of value, which Smith discusses in relation to its role in the monetary system.

## Source Chapter

Book I, Chapter 5

## Context

Smith examines how gold functions within monetary systems, particularly in relation to its use for large transactions and as a standard of value.

## Economic Domain

Exchange

---
--- ENTITY: regulated proportion ---

# Regulated Proportion

## Definition

The officially established ratio between different precious metals in a nation's currency system, which Smith discusses as a key factor in maintaining monetary stability.

## Source Chapter

Book I, Chapter 5

## Context

Smith examines how regulated proportions between metals affect their relative values and the overall stability of the monetary system.

## Economic Domain

Regulation

---
--- ENTITY: public law on coinage ---

# Public Law on Coinage

## Definition

Official regulations governing the production, valuation, and use of money, which Smith discusses as a key factor in maintaining monetary stability and preventing debasement.

## Source Chapter

Book I, Chapter 5

## Context

Smith examines how public laws on coinage affect the value and stability of money, and how changes in these laws can impact the overall monetary system.

## Economic Domain

Regulation

---
--- ENTITY: market regulation of prices ---

# Market Regulation of Prices

## Definition

The natural process by which market forces determine prices through supply and demand, which Smith argues is more effective than official regulation in establishing accurate values.

## Source Chapter

Book I, Chapter 5

## Context

Smith discusses how market forces naturally regulate prices through the process of negotiation and exchange, arguing that this is more effective than official price controls.

## Economic Domain

Exchange

