--- ENTITY: Division of Labour ---
# Division of Labour

## Definition
Division of Labour refers to the process of splitting up a task into a series of smaller tasks, each of which is performed by a specialist worker. This allows for an increase in productivity and efficiency as workers can focus on one or a few tasks where they can apply their skills, rather than having to learn and perform all tasks required to produce a good or service.

## Source Chapter
Book 1, Chapter 4

## Context
According to Adam Smith, the division of labour has been a fundamental aspect of economic progress. His discussion of the division of labour in this chapter is focused on the difficulties that arise when individuals specializing in different tasks need to exchange goods and services.

## Economic Domain
Labour Economics, Microeconomics

--- ENTITY: Commercial Society ---
# Commercial Society

## Definition
Commercial Society refers to a society in which the majority of economic activity is based on the exchange of goods and services. In such a society, individuals rely on the production of others for the majority of their needs and wants, facilitated by the use of money as a medium of exchange.

## Source Chapter
Book 1, Chapter 4

## Context
Smith uses the concept of a commercial society to explain the development of complex economies where individuals become increasingly specialized in their work and depend on trade with others to meet their needs.

## Economic Domain
Economic Sociology, Economic History, Microeconomics

--- ENTITY: Money ---
# Money

## Definition
Money is a medium of exchange that is widely accepted in transactions involving goods, services, and repayment of debts. It serves as a store of value and a standard of deferred payment. Money can take various forms, including coins, banknotes, and digital tokens.

## Source Chapter
Book 1, Chapter 4

## Context
Smith discusses the origin and use of money. He argues that the emergence of money is a solution to the problems of barter, providing a universally acceptable medium of exchange that facilitates trade and the division of labour in a commercial society.

## Economic Domain
Monetary Economics, Macroeconomics

--- ENTITY: Commodity ---
# Commodity

## Definition
A commodity is a basic good that is used in commerce and can be interchanged with other commodities of the same type. Commodities are most often used as inputs in the production of other goods or services. Their quality may differ slightly but is essentially uniform across producers.

## Source Chapter
Book 1, Chapter 4

## Context
Smith discusses commodities in the context of exchange and barter, where one commodity is traded for another before the advent of money. He also makes reference to various commodities used as a medium of exchange in different societies.

## Economic Domain
Microeconomics, Commodities Market

--- ENTITY: Barter ---
# Barter

## Definition
Barter is a method of exchange by which goods or services are directly exchanged for other goods or services without using a medium of exchange, such as money. It is a form of trade that predates the use of money.

## Source Chapter
Book 1, Chapter 4

## Context
Smith explains the limitations of the barter system, especially in a society where the division of labour is prominent. These limitations, according to Smith, led to the development and use of money as a common medium of exchange.

## Economic Domain
Economic Anthropology, Economic History, Microeconomics