---
entity_slug: colonial_economic_opportunity_costs
evaluator: null
evaluated_at: '2026-02-23T04:46:34.896306'
overall_score: 4.6
scores:
- name: definition_precision
  value: 4.0
  max_value: 5.0
  rationale: The definition clearly articulates opportunity costs as foregone benefits
    from monopoly restrictions, specifying concrete elements like lost trade opportunities
    and inefficient allocation. It avoids circularity and captures a distinct economic
    concept with measurable implications.
- name: source_grounding
  value: 5.0
  max_value: 5.0
  rationale: This concept is deeply grounded in Smith's analysis throughout Book IV,
    Chapter 7, where he extensively discusses how colonial monopolies prevent better
    economic outcomes and create invisible losses. Smith explicitly contrasts actual
    monopoly profits with the much larger potential gains from free trade.
- name: domain_placement
  value: 5.0
  max_value: 5.0
  rationale: '"General Theory" is the correct domain placement as this represents
    Smith''s broader theoretical framework for analyzing economic efficiency and market
    outcomes. The concept transcends specific colonial policies to illustrate fundamental
    principles of resource allocation.'
- name: vsm_relevance
  value: 4.0
  max_value: 5.0
  rationale: This entity maps well to S4 (intelligence/environmental adaptation) as
    it represents the system's ability to recognize and evaluate alternative strategic
    paths and their comparative benefits. It also connects to S3 (internal regulation)
    in terms of auditing actual performance against potential outcomes.
- name: explanatory_value
  value: 5.0
  max_value: 5.0
  rationale: This entity provides substantial explanatory power by revealing the hidden
    mechanism through which monopolies create systemic inefficiency beyond visible
    costs. It illuminates how seemingly profitable policies can generate net losses
    by foreclosing superior alternatives.
---

# Evaluation: Colonial Economic Opportunity Costs

## definition_precision — 4.0 / 5.0

The definition clearly articulates opportunity costs as foregone benefits from monopoly restrictions, specifying concrete elements like lost trade opportunities and inefficient allocation. It avoids circularity and captures a distinct economic concept with measurable implications.

## source_grounding — 5.0 / 5.0

This concept is deeply grounded in Smith's analysis throughout Book IV, Chapter 7, where he extensively discusses how colonial monopolies prevent better economic outcomes and create invisible losses. Smith explicitly contrasts actual monopoly profits with the much larger potential gains from free trade.

## domain_placement — 5.0 / 5.0

"General Theory" is the correct domain placement as this represents Smith's broader theoretical framework for analyzing economic efficiency and market outcomes. The concept transcends specific colonial policies to illustrate fundamental principles of resource allocation.

## vsm_relevance — 4.0 / 5.0

This entity maps well to S4 (intelligence/environmental adaptation) as it represents the system's ability to recognize and evaluate alternative strategic paths and their comparative benefits. It also connects to S3 (internal regulation) in terms of auditing actual performance against potential outcomes.

## explanatory_value — 5.0 / 5.0

This entity provides substantial explanatory power by revealing the hidden mechanism through which monopolies create systemic inefficiency beyond visible costs. It illuminates how seemingly profitable policies can generate net losses by foreclosing superior alternatives.
