---
entity_slug: ordinary_market_price_of_land
evaluator: null
evaluated_at: '2026-02-23T06:03:10.425994'
overall_score: 4.2
scores:
- name: definition_precision
  value: 4.0
  max_value: 5.0
  rationale: The definition is precise and captures a distinct economic concept -
    the market price of land as determined by the relationship between expected rental
    income and available interest rates. It avoids circularity by explaining the mechanism
    rather than simply restating "the price land sells for."
- name: source_grounding
  value: 5.0
  max_value: 5.0
  rationale: This concept is directly grounded in Smith's analysis in Book II, Chapter
    4, where he explicitly discusses how land prices are determined by comparing land
    rents to interest rates on money lending. The entity accurately reflects Smith's
    actual reasoning about land valuation.
- name: domain_placement
  value: 5.0
  max_value: 5.0
  rationale: The placement in "Distribution" is correct, as this concept deals with
    how returns are distributed between different forms of capital investment (land
    versus financial instruments). It fits squarely within Smith's analysis of how
    income flows are allocated across different asset classes.
- name: vsm_relevance
  value: 3.0
  max_value: 5.0
  rationale: This entity has moderate VSM relevance, potentially mapping to S4 (intelligence)
    as it represents market information processing that helps coordinate resource
    allocation decisions. However, it's primarily a pricing mechanism rather than
    a clear organizational function.
- name: explanatory_value
  value: 4.0
  max_value: 5.0
  rationale: The entity provides genuine explanatory power by illuminating the structural
    mechanism that determines land prices through the comparison of different investment
    returns. It reveals how market participants make rational allocation decisions
    between asset classes based on risk-adjusted returns.
---

# Evaluation: Ordinary Market Price Of Land

## definition_precision — 4.0 / 5.0

The definition is precise and captures a distinct economic concept - the market price of land as determined by the relationship between expected rental income and available interest rates. It avoids circularity by explaining the mechanism rather than simply restating "the price land sells for."

## source_grounding — 5.0 / 5.0

This concept is directly grounded in Smith's analysis in Book II, Chapter 4, where he explicitly discusses how land prices are determined by comparing land rents to interest rates on money lending. The entity accurately reflects Smith's actual reasoning about land valuation.

## domain_placement — 5.0 / 5.0

The placement in "Distribution" is correct, as this concept deals with how returns are distributed between different forms of capital investment (land versus financial instruments). It fits squarely within Smith's analysis of how income flows are allocated across different asset classes.

## vsm_relevance — 3.0 / 5.0

This entity has moderate VSM relevance, potentially mapping to S4 (intelligence) as it represents market information processing that helps coordinate resource allocation decisions. However, it's primarily a pricing mechanism rather than a clear organizational function.

## explanatory_value — 4.0 / 5.0

The entity provides genuine explanatory power by illuminating the structural mechanism that determines land prices through the comparison of different investment returns. It reveals how market participants make rational allocation decisions between asset classes based on risk-adjusted returns.
