---
entity_slug: capital_employment_effects
evaluator: null
evaluated_at: '2026-02-23T04:40:45.812680'
overall_score: 4.4
scores:
- name: definition_precision
  value: 4.0
  max_value: 5.0
  rationale: The definition clearly distinguishes between different types of capital
    employment and their specific effects on labor utilization and value creation.
    It avoids circularity and identifies measurable outcomes (quantity of productive
    labour, value added) that differentiate the concept.
- name: source_grounding
  value: 5.0
  max_value: 5.0
  rationale: This entity is directly grounded in Book II, Chapter 5, where Smith explicitly
    analyzes and ranks different capital employments by their productivity effects.
    The hierarchical ranking (agriculture > manufacturing > trade) and the focus on
    labor utilization are central themes Smith develops systematically in this chapter.
- name: domain_placement
  value: 5.0
  max_value: 5.0
  rationale: '"General Theory" is the appropriate domain placement as this concept
    represents one of Smith''s fundamental theoretical frameworks for understanding
    capital allocation efficiency. It''s a core analytical tool that spans multiple
    economic sectors rather than belonging to any specific industry domain.'
- name: vsm_relevance
  value: 3.0
  max_value: 5.0
  rationale: This entity has moderate VSM relevance, primarily mapping to S4 (intelligence/environmental
    adaptation) as it provides analytical framework for understanding how different
    capital deployments affect system performance. However, it's somewhat abstract
    and doesn't clearly align with operational systems (S1-S3) or pure policy (S5).
- name: explanatory_value
  value: 5.0
  max_value: 5.0
  rationale: This entity provides significant explanatory power by illuminating the
    structural mechanism behind Smith's policy preferences and his theory of optimal
    resource allocation. It explains why Smith advocates for certain economic policies
    and reveals the underlying logic of his productivity analysis.
---

# Evaluation: Capital Employment Effects

## definition_precision — 4.0 / 5.0

The definition clearly distinguishes between different types of capital employment and their specific effects on labor utilization and value creation. It avoids circularity and identifies measurable outcomes (quantity of productive labour, value added) that differentiate the concept.

## source_grounding — 5.0 / 5.0

This entity is directly grounded in Book II, Chapter 5, where Smith explicitly analyzes and ranks different capital employments by their productivity effects. The hierarchical ranking (agriculture > manufacturing > trade) and the focus on labor utilization are central themes Smith develops systematically in this chapter.

## domain_placement — 5.0 / 5.0

"General Theory" is the appropriate domain placement as this concept represents one of Smith's fundamental theoretical frameworks for understanding capital allocation efficiency. It's a core analytical tool that spans multiple economic sectors rather than belonging to any specific industry domain.

## vsm_relevance — 3.0 / 5.0

This entity has moderate VSM relevance, primarily mapping to S4 (intelligence/environmental adaptation) as it provides analytical framework for understanding how different capital deployments affect system performance. However, it's somewhat abstract and doesn't clearly align with operational systems (S1-S3) or pure policy (S5).

## explanatory_value — 5.0 / 5.0

This entity provides significant explanatory power by illuminating the structural mechanism behind Smith's policy preferences and his theory of optimal resource allocation. It explains why Smith advocates for certain economic policies and reveals the underlying logic of his productivity analysis.
