768 B
768 B
Annual Produce of Land and Labour
Annual Produce of Land and Labour
Definition
The total output generated each year through agricultural production and human labour. This represents the fundamental source of all economic value and the pool from which all revenues, including interest payments, must ultimately be drawn.
Source Chapter
Book II, Chapter 4
Context
Smith uses this concept to explain how lending operates as an assignment of rights to portions of this annual produce. The size of this pool determines the total amount of capital that can be lent at interest in any economy.
Economic Domain
Production