---
entity_slug: money_price_of_labour
evaluator: null
evaluated_at: '2026-02-23T05:54:28.885730'
overall_score: 4.2
scores:
- name: definition_precision
  value: 4.0
  max_value: 5.0
  rationale: The definition is clear and precise, identifying money price of labour
    as wage rates in monetary units with the specific constraint that they must enable
    subsistence purchases. The definition avoids circularity and captures a distinct
    economic concept with measurable characteristics.
- name: source_grounding
  value: 5.0
  max_value: 5.0
  rationale: This entity is directly grounded in Smith's text, particularly his analysis
    in Book IV, Chapter 5 of how corn prices regulate labor wages. The connection
    between subsistence needs and wage determination is a core theme Smith explicitly
    develops throughout The Wealth of Nations.
- name: domain_placement
  value: 5.0
  max_value: 5.0
  rationale: The placement in "Distribution" domain is entirely appropriate, as the
    money price of labour is fundamentally about how national income is distributed
    between different factors of production. This fits perfectly within Smith's analysis
    of wages as one of the three components of price alongside profit and rent.
- name: vsm_relevance
  value: 3.0
  max_value: 5.0
  rationale: This entity has moderate VSM relevance, primarily mapping to S1 (primary
    operations) as wages represent the operational cost of labor inputs in productive
    activities. However, it also touches S3 (internal regulation) through the subsistence
    constraint that regulates wage levels, making it somewhat distributed across systems.
- name: explanatory_value
  value: 4.0
  max_value: 5.0
  rationale: This entity provides strong explanatory value by illuminating the mechanism
    linking subsistence costs to wage determination, which is fundamental to understanding
    how labor markets function in Smith's framework. It reveals the structural relationship
    between basic needs and compensation rather than merely naming a surface phenomenon.
---

# Evaluation: Money Price Of Labour

## definition_precision — 4.0 / 5.0

The definition is clear and precise, identifying money price of labour as wage rates in monetary units with the specific constraint that they must enable subsistence purchases. The definition avoids circularity and captures a distinct economic concept with measurable characteristics.

## source_grounding — 5.0 / 5.0

This entity is directly grounded in Smith's text, particularly his analysis in Book IV, Chapter 5 of how corn prices regulate labor wages. The connection between subsistence needs and wage determination is a core theme Smith explicitly develops throughout The Wealth of Nations.

## domain_placement — 5.0 / 5.0

The placement in "Distribution" domain is entirely appropriate, as the money price of labour is fundamentally about how national income is distributed between different factors of production. This fits perfectly within Smith's analysis of wages as one of the three components of price alongside profit and rent.

## vsm_relevance — 3.0 / 5.0

This entity has moderate VSM relevance, primarily mapping to S1 (primary operations) as wages represent the operational cost of labor inputs in productive activities. However, it also touches S3 (internal regulation) through the subsistence constraint that regulates wage levels, making it somewhat distributed across systems.

## explanatory_value — 4.0 / 5.0

This entity provides strong explanatory value by illuminating the mechanism linking subsistence costs to wage determination, which is fundamental to understanding how labor markets function in Smith's framework. It reveals the structural relationship between basic needs and compensation rather than merely naming a surface phenomenon.
