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# Economic System Effectiveness Evaluation

## Definition

The assessment of different economic arrangements based on their ability to promote national prosperity, consumer welfare, and efficient resource allocation, which Smith applies to critique mercantilist policies and advocate for free trade principles.

## Source Chapter

Book IV, Chapter 3

## Context

Smith evaluates the commercial system against criteria of economic efficiency and public benefit, demonstrating how mercantilist policies fail to achieve their stated objectives while causing significant economic harm.

## Economic Domain

General Theory

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