799 B
799 B
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