# Materials and Subsistence # Materials and Subsistence ## Definition The physical inputs and basic provisions supplied by employers to workers during production. Materials are the raw or processed goods used in manufacturing, while subsistence refers to the food and necessities provided to sustain workers during their labour. ## Source Chapter Book I, Chapter 6 ## Context Discussed as what employers advance to workers in exchange for their labour. Smith explains that the price of the final product must cover not only the cost of materials and wages but also provide profit for the employer who has advanced these resources. ## Economic Domain Production ---