---
entity_slug: temporary_versus_permanent_price_effects
evaluator: null
evaluated_at: '2026-02-23T06:30:24.768268'
overall_score: 4.2
scores:
- name: definition_precision
  value: 4.0
  max_value: 5.0
  rationale: The definition clearly distinguishes between short-term market fluctuations
    and long-term structural price changes, providing a precise conceptual boundary.
    The distinction is non-circular and captures a meaningful economic phenomenon
    that Smith explicitly addresses.
- name: source_grounding
  value: 5.0
  max_value: 5.0
  rationale: This concept is directly grounded in Smith's analysis in Book IV, Chapter
    2, where he systematically examines how trade restrictions create lasting price
    distortions versus natural market fluctuations. Smith explicitly argues that protectionist
    policies cause permanent rather than temporary market disruptions.
- name: domain_placement
  value: 5.0
  max_value: 5.0
  rationale: The "Distribution" domain is appropriate since this concept deals with
    how prices are affected by market mechanisms and policy interventions in the distribution
    of goods. The focus on price effects from trade restrictions fits naturally within
    distributional analysis.
- name: vsm_relevance
  value: 3.0
  max_value: 5.0
  rationale: This entity has moderate VSM relevance, primarily mapping to S2 (coordination/anti-oscillation)
    in its concern with market stability and S4 (intelligence/adaptation) in analyzing
    environmental responses to policy changes. However, it's somewhat abstract and
    doesn't strongly anchor to any single VSM system.
- name: explanatory_value
  value: 4.0
  max_value: 5.0
  rationale: The entity provides genuine explanatory power by illuminating the mechanism
    through which government interventions create structural versus cyclical market
    effects. It helps explain why Smith opposes protectionist policies by showing
    their lasting distortionary impact on price signals.
---

# Evaluation: Temporary Versus Permanent Price Effects

## definition_precision — 4.0 / 5.0

The definition clearly distinguishes between short-term market fluctuations and long-term structural price changes, providing a precise conceptual boundary. The distinction is non-circular and captures a meaningful economic phenomenon that Smith explicitly addresses.

## source_grounding — 5.0 / 5.0

This concept is directly grounded in Smith's analysis in Book IV, Chapter 2, where he systematically examines how trade restrictions create lasting price distortions versus natural market fluctuations. Smith explicitly argues that protectionist policies cause permanent rather than temporary market disruptions.

## domain_placement — 5.0 / 5.0

The "Distribution" domain is appropriate since this concept deals with how prices are affected by market mechanisms and policy interventions in the distribution of goods. The focus on price effects from trade restrictions fits naturally within distributional analysis.

## vsm_relevance — 3.0 / 5.0

This entity has moderate VSM relevance, primarily mapping to S2 (coordination/anti-oscillation) in its concern with market stability and S4 (intelligence/adaptation) in analyzing environmental responses to policy changes. However, it's somewhat abstract and doesn't strongly anchor to any single VSM system.

## explanatory_value — 4.0 / 5.0

The entity provides genuine explanatory power by illuminating the mechanism through which government interventions create structural versus cyclical market effects. It helps explain why Smith opposes protectionist policies by showing their lasting distortionary impact on price signals.
