---
entity_slug: market_extent_economic_impact
evaluator: null
evaluated_at: '2026-02-23T05:45:20.204514'
overall_score: 4.6
scores:
- name: definition_precision
  value: 4.0
  max_value: 5.0
  rationale: The definition clearly distinguishes between market size/reach and their
    specific economic effects on specialization and productivity. It avoids circularity
    by explaining the causal mechanism rather than just restating "market extent impacts
    economics."
- name: source_grounding
  value: 5.0
  max_value: 5.0
  rationale: This concept is directly grounded in Smith's core argument from Book
    I, Chapter 3, where he explicitly demonstrates how market size enables division
    of labor and supports specialized economic activities. The entity accurately reflects
    Smith's actual theoretical framework.
- name: domain_placement
  value: 5.0
  max_value: 5.0
  rationale: '"General Theory" is the appropriate domain placement as this represents
    one of Smith''s fundamental theoretical insights about market mechanics. This
    is a core structural principle rather than a specific application or policy consideration.'
- name: vsm_relevance
  value: 4.0
  max_value: 5.0
  rationale: This entity maps well to S4 (intelligence/environmental adaptation) as
    it describes how economic systems adapt their internal organization based on environmental
    market conditions. It also relates to S1 (operations) by explaining how operational
    capacity scales with market reach.
- name: explanatory_value
  value: 5.0
  max_value: 5.0
  rationale: This entity provides genuine explanatory power by illuminating the causal
    mechanism between market size and economic organization. It explains why certain
    economic structures emerge under different market conditions, making it a valuable
    analytical tool rather than mere description.
---

# Evaluation: Market Extent Economic Impact

## definition_precision — 4.0 / 5.0

The definition clearly distinguishes between market size/reach and their specific economic effects on specialization and productivity. It avoids circularity by explaining the causal mechanism rather than just restating "market extent impacts economics."

## source_grounding — 5.0 / 5.0

This concept is directly grounded in Smith's core argument from Book I, Chapter 3, where he explicitly demonstrates how market size enables division of labor and supports specialized economic activities. The entity accurately reflects Smith's actual theoretical framework.

## domain_placement — 5.0 / 5.0

"General Theory" is the appropriate domain placement as this represents one of Smith's fundamental theoretical insights about market mechanics. This is a core structural principle rather than a specific application or policy consideration.

## vsm_relevance — 4.0 / 5.0

This entity maps well to S4 (intelligence/environmental adaptation) as it describes how economic systems adapt their internal organization based on environmental market conditions. It also relates to S1 (operations) by explaining how operational capacity scales with market reach.

## explanatory_value — 5.0 / 5.0

This entity provides genuine explanatory power by illuminating the causal mechanism between market size and economic organization. It explains why certain economic structures emerge under different market conditions, making it a valuable analytical tool rather than mere description.
