# Human Nature

## Definition

The inherent characteristics and propensities of human beings, particularly the universal disposition to truck, barter, and exchange, which Smith identifies as the fundamental principle underlying economic organisation and the division of labour.

## Source Chapter

Book I, Chapter 2

## Context

Smith argues that the propensity to exchange is common to all men and found in no other race of animals, suggesting it may be either an original principle of human nature or a necessary consequence of reason and speech.

## Economic Domain

General Theory

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