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# Surplus Produce

## Definition

The excess of production over domestic consumption that becomes available for exchange, trade, or export. Surplus produce represents the portion of annual output that exceeds immediate domestic needs and can be directed toward capital accumulation, foreign trade, or other economic activities beyond basic subsistence.

## Source Chapter

Book II, Chapter 5

## Context

Smith uses surplus produce as a key concept in understanding trade dynamics, arguing that it must be exported when domestic demand is satisfied. He emphasizes that surplus produce acquires value only through exchange and that its existence enables international trade and economic growth.

## Economic Domain

Production

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