---
entity_slug: revenue_constituting_profit_and_rent
evaluator: null
evaluated_at: '2026-02-23T06:18:28.032618'
overall_score: 4.2
scores:
- name: definition_precision
  value: 4.0
  max_value: 5.0
  rationale: The definition clearly distinguishes this revenue type from capital replacement
    revenue and specifies its dual nature as profit/rent that can maintain either
    productive or unproductive labor. The concept of "surplus after capital renewal"
    provides a precise economic boundary.
- name: source_grounding
  value: 5.0
  max_value: 5.0
  rationale: This entity directly reflects Smith's explicit division of annual produce
    in Book II, Chapter 3, where he systematically distinguishes between revenue that
    replaces capital versus revenue that constitutes profit and rent. The behavioral
    observation about owners' predilection for unproductive hands is also textually
    grounded.
- name: domain_placement
  value: 5.0
  max_value: 5.0
  rationale: Placement in "Distribution" is precisely correct, as this entity concerns
    how the annual produce is allocated between different economic functions and classes.
    This is a core distributional mechanism in Smith's framework.
- name: vsm_relevance
  value: 3.0
  max_value: 5.0
  rationale: This entity has moderate VSM relevance, potentially mapping to S3 (internal
    regulation) as it represents resource allocation decisions within the economic
    system. However, it's somewhat abstract and doesn't clearly align with operational
    VSM functions.
- name: explanatory_value
  value: 4.0
  max_value: 5.0
  rationale: "The entity illuminates a crucial structural mechanism in Smith's economic\
    \ system\u2014how surplus revenue allocation affects the productive/unproductive\
    \ labor balance and thus society's overall productive capacity. This goes beyond\
    \ mere classification to reveal causal relationships."
---

# Evaluation: Revenue Constituting Profit And Rent

## definition_precision — 4.0 / 5.0

The definition clearly distinguishes this revenue type from capital replacement revenue and specifies its dual nature as profit/rent that can maintain either productive or unproductive labor. The concept of "surplus after capital renewal" provides a precise economic boundary.

## source_grounding — 5.0 / 5.0

This entity directly reflects Smith's explicit division of annual produce in Book II, Chapter 3, where he systematically distinguishes between revenue that replaces capital versus revenue that constitutes profit and rent. The behavioral observation about owners' predilection for unproductive hands is also textually grounded.

## domain_placement — 5.0 / 5.0

Placement in "Distribution" is precisely correct, as this entity concerns how the annual produce is allocated between different economic functions and classes. This is a core distributional mechanism in Smith's framework.

## vsm_relevance — 3.0 / 5.0

This entity has moderate VSM relevance, potentially mapping to S3 (internal regulation) as it represents resource allocation decisions within the economic system. However, it's somewhat abstract and doesn't clearly align with operational VSM functions.

## explanatory_value — 4.0 / 5.0

The entity illuminates a crucial structural mechanism in Smith's economic system—how surplus revenue allocation affects the productive/unproductive labor balance and thus society's overall productive capacity. This goes beyond mere classification to reveal causal relationships.
