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# Labour of Inspection and Direction

## Definition

The supervisory work performed by employers or managers in overseeing production processes and directing workers. This labour is distinct from the manual labour of production and is compensated through profits rather than wages.

## Source Chapter

Book I, Chapter 6

## Context

Distinguished from profits of stock, with Smith arguing that the profits of stock are regulated by the value of capital employed rather than by the quantity or difficulty of supervisory labour. He uses the example of different manufacturing scales to demonstrate this distinction.

## Economic Domain

Production

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