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# Economic Systems Distinction

## Definition

The fundamental differentiation between various approaches to organizing economic activity and generating wealth, particularly the contrast between commercial and agricultural systems as identified by Smith. This distinction recognizes that different economic arrangements produce different outcomes and serve different historical contexts.

## Source Chapter

Book IV, Chapter 0

## Context

Smith establishes the framework for understanding different economic systems by distinguishing between the commercial and agricultural approaches to political economy. This distinction forms the basis for his subsequent analysis of economic development and policy.

## Economic Domain

General Theory

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