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# Economic System Knowledge

## Definition

The understanding and comprehension of economic principles, mechanisms, and arrangements that enables effective participation in and management of economic systems, including the knowledge necessary for statesmen, legislators, and economic actors to make informed decisions.

## Source Chapter

Book IV, Chapter 0

## Context

Smith positions political economy as a science that requires understanding by those who govern, establishing the importance of economic knowledge for effective policy-making and economic management.

## Economic Domain

General Theory

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