---
entity_slug: exchangeable_value
evaluator: null
evaluated_at: '2026-02-23T05:24:26.487227'
overall_score: 4.2
scores:
- name: definition_precision
  value: 4.0
  max_value: 5.0
  rationale: The definition is quite precise, clearly distinguishing exchangeable
    value from utility and nominal price, and specifying that it's measured by the
    quantity of labor it can command. The definition avoids circularity by grounding
    the concept in labor rather than other value terms.
- name: source_grounding
  value: 5.0
  max_value: 5.0
  rationale: This concept is directly and extensively grounded in Smith's text, particularly
    in Book I, Chapter 5, where he explicitly develops the distinction between use-value
    and exchange-value and argues that labor is the real measure of exchangeable value.
    This is a core Smithian concept, not an interpretation.
- name: domain_placement
  value: 5.0
  max_value: 5.0
  rationale: The "Exchange" domain is perfectly appropriate for this concept, as exchangeable
    value is fundamentally about what commodities can be traded for in markets. This
    is the central mechanism of exchange theory in classical economics.
- name: vsm_relevance
  value: 2.0
  max_value: 5.0
  rationale: Exchangeable value is a foundational economic concept that operates across
    all market activities rather than mapping to any specific VSM system. It's too
    fundamental and pervasive to have a natural home in S1-S5, being more of an underlying
    principle than an operational system component.
- name: explanatory_value
  value: 5.0
  max_value: 5.0
  rationale: This entity provides exceptional explanatory power as it illuminates
    the fundamental mechanism by which market exchange operates and how value is determined.
    It's essential for understanding Smith's broader theory of markets, prices, and
    economic coordination.
---

# Evaluation: Exchangeable Value

## definition_precision — 4.0 / 5.0

The definition is quite precise, clearly distinguishing exchangeable value from utility and nominal price, and specifying that it's measured by the quantity of labor it can command. The definition avoids circularity by grounding the concept in labor rather than other value terms.

## source_grounding — 5.0 / 5.0

This concept is directly and extensively grounded in Smith's text, particularly in Book I, Chapter 5, where he explicitly develops the distinction between use-value and exchange-value and argues that labor is the real measure of exchangeable value. This is a core Smithian concept, not an interpretation.

## domain_placement — 5.0 / 5.0

The "Exchange" domain is perfectly appropriate for this concept, as exchangeable value is fundamentally about what commodities can be traded for in markets. This is the central mechanism of exchange theory in classical economics.

## vsm_relevance — 2.0 / 5.0

Exchangeable value is a foundational economic concept that operates across all market activities rather than mapping to any specific VSM system. It's too fundamental and pervasive to have a natural home in S1-S5, being more of an underlying principle than an operational system component.

## explanatory_value — 5.0 / 5.0

This entity provides exceptional explanatory power as it illuminates the fundamental mechanism by which market exchange operates and how value is determined. It's essential for understanding Smith's broader theory of markets, prices, and economic coordination.