markitect-main/examples/infospace-with-history/output/entities/book-4-introduction-prompt.md

# Extract Economic Entities

You are an analytical economist specializing in classical economic theory.
Your task is to extract distinct economic entities from a chapter of
Adam Smith's *The Wealth of Nations*.

## Source Chapter

---
id: book-4-introduction
title: "Book 4 Introduction"
book: "4"
chapter: 0
artifact_type: content
---

BOOK IV.
OF SYSTEMS OF POLITICAL ECONOMY.



      Political economy, considered as a branch of the science of a statesman or
      legislator, proposes two distinct objects; first, to provide a plentiful
      revenue or subsistence for the people, or, more properly, to enable them
      to provide such a revenue or subsistence for themselves; and, secondly, to
      supply the state or commonwealth with a revenue sufficient for the public
      services. It proposes to enrich both the people and the sovereign.

      The different progress of opulence in different ages and nations, has
      given occasion to two different systems of political economy, with regard
      to enriching the people. The one may be called the system of commerce, the
      other that of agriculture. I shall endeavour to explain both as fully and
      distinctly as I can, and shall begin with the system of commerce. It is
      the modern system, and is best understood in our own country and in our
      own times.


## Extraction Guidelines

---
id: extraction-rules
name: extraction_rules
artifact_type: content
description: Guidelines for extracting economic entities from source text
version: 1.0.0
---

# Entity Extraction Rules

## What Constitutes an Entity

An economic entity is a distinct concept, actor, mechanism, or institution
that plays a functional role in Adam Smith's economic analysis. Extract
entities at the level of specificity where they carry independent meaning.

## Extraction Criteria

1. **Concepts**: Abstract economic ideas (e.g., "division of labour",
   "effectual demand", "natural price"). Extract when Smith defines,
   explains, or argues about the concept.

2. **Actors**: Economic agents with defined roles (e.g., "the labourer",
   "the merchant", "the sovereign"). Extract when the actor performs
   a distinct economic function.

3. **Mechanisms**: Processes or dynamics that produce economic effects
   (e.g., "accumulation of stock", "market price adjustment",
   "foreign trade"). Extract when the mechanism is described as
   producing specific outcomes.

4. **Institutions**: Organised structures that shape economic behaviour
   (e.g., "the corporation", "the guild", "the joint-stock company").
   Extract when the institution's economic function is described.

## Granularity Rules

- Extract at the level of a single coherent concept.
- Do NOT extract synonyms as separate entities — choose the primary term
  Smith uses and note variations.
- DO extract distinct aspects of a broad concept as separate entities when
  Smith treats them independently (e.g., "wages of labour" and "profits
  of stock" are separate from "price of commodities" even though they
  compose it).
- If an entity appears across multiple chapters, extract it on first
  significant appearance and note cross-references in later chapters.

## Naming Conventions

- Use Smith's own terminology where possible.
- Normalise to lowercase except for proper nouns.
- Use the most common form Smith uses (e.g., "division of labour" not
  "divided labour").

## Quality Checks

- Each entity must have a definition that would be comprehensible without
  reading the source chapter.
- Each entity must cite the specific book and chapter of first appearance.
- **Economic Domain** must be EXACTLY ONE of: Production, Distribution,
  Exchange, Consumption, Accumulation, Regulation, or General Theory.
  Do not combine multiple domains. Do not use any other value.
- **Source Chapter format**: Use `Book [Roman numeral], Chapter [number]`
  — for example `Book I, Chapter 3`. Do not include the chapter title,
  quotation marks, markdown formatting, or asterisks. Use Roman numerals
  for the book (I, II, III, IV, V).


## VSM Framework Context

Use the following VSM framework as context to guide your extraction.
Prioritize entities that are likely to have clear mappings to VSM concepts,
but do not exclude entities simply because they lack an obvious mapping.

---
id: vsm-framework
name: vsm_framework
artifact_type: content
description: Stafford Beer's Viable System Model reference for economic analysis
version: 1.0.0
---

# Stafford Beer's Viable System Model (VSM)

The Viable System Model (VSM) is a model of the organisational structure of any
autonomous system capable of producing itself. It was created by management
cybernetician Stafford Beer in his books *Brain of the Firm* (1972) and
*The Heart of Enterprise* (1979).

## Core Principle: Viability

A viable system is any system organised in such a way as to meet the demands
of surviving in a changing environment. One of the prime features of systems
that survive is that they are adaptable. The VSM expresses a model for a
viable system, which is an abstracted cybernetic description applicable to
any organisation that is a going concern.

## The Five Systems

### System 1 (S1) — Operations

The primary activities that produce the organisation's purpose. These are the
operational units that directly create value. Each operational element is itself
a viable system (the principle of recursion).

**In economic terms:** Productive enterprises, factories, farms, workshops,
individual labourers performing specialised tasks, merchant operations.

**Key properties:** Autonomy within constraints, self-organisation,
direct engagement with the environment.

### System 2 (S2) — Coordination

The information channels and bodies that allow the primary activities in
System 1 to communicate with each other and that allow System 3 to monitor
and coordinate activities. System 2 dampens oscillations and resolves
conflicts between operational units.

**In economic terms:** Market price mechanisms, trade customs, standard
weights and measures, commercial law, banking clearinghouses, trade guilds.

**Key properties:** Anti-oscillatory, dampening, scheduling, conflict
resolution, standardisation.

### System 3 (S3) — Control / Operational Management

The structures and controls that establish the rules, resources, rights,
and responsibilities of System 1 and provide an interface between Systems 1
and Systems 4/5. System 3 represents the day-to-day control of the
organisation. It optimises the internal environment.

**In economic terms:** Government regulation of trade, taxation policy, labour
laws, enforcement of contracts, the "invisible hand" as emergent internal
regulation, guilds and corporations governing members.

**Key properties:** Internal regulation, resource allocation, accountability,
synergy extraction, performance management.

### System 3* (S3*) — Audit / Monitoring

The audit and monitoring channel that allows System 3 to verify information
coming from System 1 through channels other than those provided by System 2.
System 3* provides sporadic, direct access to operational reality.

**In economic terms:** Market inspections, quality checks, auditing of accounts,
surprise investigations into trade practices, verification of weights and measures.

**Key properties:** Sporadic direct investigation, reality checking, bypassing
normal reporting channels.

### System 4 (S4) — Intelligence / Adaptation

The bodies and processes that look outward to the environment to monitor
how the organisation needs to adapt to remain viable. System 4 captures
all relevant information about the outside-and-then environment. It is
responsible for strategic responses.

**In economic terms:** Foreign intelligence about trade opportunities,
market research, new technology adoption, colonial exploration and trade
route development, understanding of foreign economic systems.

**Key properties:** Environmental scanning, future orientation, strategic
planning, modelling, research and development.

### System 5 (S5) — Policy / Identity

The policy-making body that balances demands from Systems 3 and 4 and defines
the identity, values, and purpose of the organisation. System 5 provides
closure to the whole system and represents its supreme authority.

**In economic terms:** Sovereign authority, constitutional principles governing
economic policy, national economic identity, the philosophical foundations
of economic systems (mercantilism vs. free trade), the overarching purpose
of the commonwealth.

**Key properties:** Identity, ethos, supreme command, policy closure,
balancing internal and external perspectives.

## Key Concepts

### Recursion

Every viable system contains and is contained in a viable system. The same
five-system structure recurs at every level of organisation. A workshop is
a viable system within a factory, which is a viable system within an
industry, which is a viable system within a national economy.

### Variety

A measure of the number of possible states of a system. The Law of Requisite
Variety (Ashby's Law) states that only variety can absorb variety. A
controller must have at least as much variety as the system it controls.

### Requisite Variety

The principle that for effective regulation, the variety of the regulator
must match the variety of the system being regulated. This is achieved
through variety attenuation (reducing the variety coming up from operations)
and variety amplification (increasing the variety of management's responses).

### Attenuation and Amplification

Variety engineering mechanisms. Attenuation reduces variety (e.g., reporting
summaries, statistical aggregation, standardisation). Amplification increases
variety (e.g., delegation, empowerment, decentralisation).

### Algedonic Signals

Emergency signals that bypass the normal management hierarchy to alert
higher systems of critical situations requiring immediate attention. Named
from the Greek words for pain (algos) and pleasure (hedone).

**In economic terms:** Market panics, famine signals, sudden price collapses,
trade embargoes, economic crises that demand immediate sovereign intervention.

### Autonomy

The degree of freedom granted to operational units (System 1) to self-organise
within constraints set by System 3. Beer argued that maximum autonomy
consistent with systemic cohesion yields maximum viability.

### Viability

The capacity of a system to maintain a separate existence and survive in a
changing environment. A viable system continuously adapts while maintaining
its identity.


## Existing Entities

The following entities have already been extracted from previous chapters
of this work. Do NOT re-extract any of these. If one of these entities
appears in the current chapter, you may omit it entirely — the infospace
already contains it. Only extract entities that are genuinely new.

- accumulation-of-stock
- active-and-productive-stock
- adulteration-of-metals
- adulterine-guilds
- advanced-state-of-society
- advancing-state-of-manufacture
- agricultural-capital
- agricultural-capital-structure
- agricultural-comparative-advantage
- agricultural-cultivation
- agricultural-cultivation-at-farmer-expense
- agricultural-cultivation-at-proprietor-expense
- agricultural-demand
- agricultural-development-constraints
- agricultural-development-sequence
- agricultural-economic-potential
- agricultural-efficiency
- agricultural-improvement
- agricultural-improvement-discouragement
- agricultural-improvement-foundation
- agricultural-labour
- agricultural-market-access-cost-structure
- agricultural-market-access-development-prerequisites
- agricultural-market-access-development-sequence
- agricultural-market-access-gradient
- agricultural-market-access-inequality
- agricultural-market-access-opportunity-cost
- agricultural-market-communication-channels
- agricultural-market-integration
- agricultural-market-size-threshold
- agricultural-opportunity-cost
- agricultural-price-ceilings
- agricultural-price-differential
- agricultural-price-discovery
- agricultural-price-discrimination
- agricultural-price-elasticity
- agricultural-price-equalization
- agricultural-price-floors
- agricultural-price-mechanism
- agricultural-price-regulation
- agricultural-price-stability
- agricultural-price-transmission
- agricultural-price-volatility
- agricultural-productivity
- agricultural-productivity-limits
- agricultural-security-gradient
- agricultural-spatial-inequality
- agricultural-specialization
- agricultural-stock
- agricultural-supply
- agricultural-surplus
- agricultural-surplus-determination
- agricultural-technology
- agricultural-technology-adoption
- agricultural-trade
- annual-consumption-of-metals
- annual-industry-employed-in-production
- annual-produce-of-land-and-labour
- apprenticeships
- artificer-neighbourhood-settlement
- artificer-planter-independence
- artificer-planter-transition
- artificer-servant-status
- artificers-and-retailers
- artificial-grasses
- artificial-market-creation
- artisan-specialisation
- assaying
- assize-of-bread
- assize-of-bread-and-ale
- aulnagers
- average-price-of-corn
- bank-capital-adequacy
- bank-capital-structure
- bank-circulation-limits
- bank-competition-effects
- bank-credit-allocation
- bank-credit-cycles
- bank-credit-extension
- bank-credit-quality
- bank-economic-contribution
- bank-economic-contribution-metrics
- bank-economic-cycles
- bank-economic-development
- bank-economic-development-metrics
- bank-economic-efficiency
- bank-economic-efficiency-factors
- bank-economic-efficiency-metrics
- bank-economic-growth
- bank-economic-resilience
- bank-economic-resilience-factors
- bank-economic-resilience-metrics
- bank-economic-stability
- bank-failure-mechanisms
- bank-financial-development
- bank-financial-innovation
- bank-financial-innovation-adoption
- bank-financial-innovation-diffusion
- bank-financial-innovation-factors
- bank-financial-innovation-impact
- bank-financial-innovation-metrics
- bank-financial-intermediation
- bank-financial-intermediation-efficiency
- bank-financial-stability
- bank-financial-stability-factors
- bank-financial-stability-metrics
- bank-financial-system-integration
- bank-financial-system-stability
- bank-information-asymmetry
- bank-interest-rate-determination
- bank-liquidity-management
- bank-market-discipline
- bank-market-structure
- bank-monetary-policy
- bank-monetary-stability
- bank-notes
- bank-operational-efficiency
- bank-operational-risk
- bank-public-utility
- bank-regulatory-compliance
- bank-regulatory-effectiveness
- bank-regulatory-evolution
- bank-regulatory-framework
- bank-regulatory-framework-evolution
- bank-reserves
- bank-risk-management
- bank-systemic-risk
- bank-systemic-risk-management
- bank-systemic-stability
- bank-transaction-costs
- barbarous-nations-barrier
- barter-and-exchange
- benevolence
- bills-of-exchange
- bleacher
- butcher-trade
- bye-laws
- canal-communication
- capital
- capital-accumulation
- capital-employed
- capital-employment-advantages
- capital-employment-effects
- capital-employment-security-gradient
- capital-replacement
- capital-security-preference
- capital-security-visibility
- carriage-value-savings
- carrying-trade
- cash-accounts
- certificates
- cheap-years
- circulating-capital
- circulating-capital-components
- circulation-of-money
- coal-heaver
- coal-price
- coarser-and-finer-materials
- coined-money
- collier
- colony-prosperity
- combination-of-masters
- combination-of-workmen
- command-over-labour
- commerce-between-town-and-country
- commerce-of-towns
- commercial-development-sequence-inversion
- commercial-family-duration-pattern
- commercial-hospitality-contrast
- commercial-independence-effect
- commercial-interactions
- commercial-order-and-government-introduction
- commercial-society
- commercial-society-emergence
- commercial-transactions
- common-annual-profits-of-manufacturing-stock
- common-labour-wages
- common-returns-of-stock
- commonalty
- competition-among-buyers
- competition-among-dealers
- competition-among-sellers
- complete-manufacture
- component-parts-of-price
- contract
- conversion-price
- copper-money
- corn-exportation-prohibition
- corn-land
- corn-rent
- corporation-laws
- corporation-privileges-and-market-prices
- country-gentlemen
- country-life-charms
- cultivation-improvement-priority
- dead-stock
- dear-years
- debasement-of-currency
- declining-manufacture
- degradation-of-coin
- demand-for-labour
- demesne
- diamond-buckles-metaphor
- discount-of-bills
- distant-country-subsistence
- distant-market-manufacturing
- distant-sale-manufacturing
- division-of-labour
- division-of-labour-advantage
- double-coincidence-of-wants
- drawing-and-redrawing
- dwelling-house-distinction
- early-and-rude-state-of-society
- early-navigation-advantages
- economic-accessibility-determinants
- economic-accessibility-gradient
- economic-autonomy-gradient
- economic-backwardness
- economic-connectivity-importance
- economic-development-constraints
- economic-development-geography
- economic-development-geography-theory
- economic-development-sequence
- economic-development-spatial-patterns
- economic-geography
- economic-geography-determinism
- economic-geography-impact
- economic-isolation-effects
- economic-opportunity-cost
- economic-opportunity-geography
- economic-prosperity-symptoms
- economic-spatial-inequality
- economic-spatial-organisation
- economic-stagnation-symptoms
- effectual-demand
- ejectment-action
- encroachment-upon-capital
- engrossers-and-forestallers
- entail
- equal-profit-employment-choice
- exchange
- exchangeable-value
- exchequer
- exclusive-corporation
- exportation-bounty
- exportation-of-gold-and-silver-as-effect-of-declension
- extraordinary-profits
- fairs-and-markets
- farm-rent
- farmer
- farmers-capital
- farmers-profit
- favour
- feudal-anarchy
- feudal-government-effects
- fixed-capital
- flax-grower
- fluctuations-in-value-of-gold-and-silver
- foreign-capital-exportation
- foreign-commerce-manufactures-birth
- foreign-trade
- foreign-trade-of-consumption
- four-methods-of-employing-capital
- free-burgh
- freeholder-yeomanry
- frozen-ocean-barrier
- frugal-and-industrious-borrowers
- frugality-versus-prodigality
- fruit-garden
- fruit-wall
- funds-for-maintaining-labour
- funds-for-maintaining-productive-labour
- funds-for-maintaining-unproductive-hands
- gold-money
- gold-price-variation
- gross-revenue
- hanseatic-league
- higgling-and-bargaining-of-the-market
- home-trade
- hop-garden
- human-folly-injustice-exposure
- human-nature
- idle-consumers
- immediate-consumption
- improved-farm-advantages
- improved-land
- improvement-of-the-country
- inclosure
- increase-of-money-as-effect-of-prosperity
- inland-market-limitation
- inland-navigation-extent
- inland-parts-of-the-country
- inland-trade
- inn-or-tavern-keeper
- instruments-of-husbandry
- interest
- interest-of-money
- interest-or-use-of-money
- journeymen
- judgment-in-labour-application
- kelp
- kitchen-garden
- labour-of-inspection-and-direction
- labouring-cattle
- labouring-poor
- land-carriage
- land-mines-and-fisheries
- landlord
- landlords-share
- law-of-primogeniture
- legal-rate-of-interest
- legal-tender
- licence-to-gather-natural-produce
- lowest-rate-of-wages
- machinery-invention
- manufactured-produce
- manufacturer
- manufacturing-capital
- manufacturing-process-subdivision
- manufacturing-subdivision
- maritime-commerce-development
- maritime-employment
- market-access-cost-structure
- market-access-development-sequence
- market-access-economic-potential
- market-access-gradient
- market-access-inequality
- market-access-opportunity-cost
- market-based-economic-geography
- market-based-economic-identity
- market-based-economic-structure
- market-based-productivity-limits
- market-based-specialisation
- market-communication-channels
- market-demand-regulation
- market-development-prerequisites
- market-driven-division
- market-extent
- market-extent-advantageousness
- market-extent-economic-impact
- market-extent-measurement
- market-for-surplus-produce
- market-integration-barriers
- market-integration-potential
- market-integration-timeline
- market-obstruction
- market-price-adjustment
- market-price-mechanism-for-rude-produce
- market-price-of-bullion
- market-price-of-commodities
- market-price-of-things
- market-price-regulation-mechanism
- market-proximity-advantage
- market-rate-of-interest
- market-regulation-of-prices
- market-separation
- market-size-economies
- market-size-specialisation-threshold
- market-size-specialization
- market-size-threshold
- market-town-economy
- market-town-formation
- masquerade-dress-trade
- master-artificer
- master-manufacturer
- materials-and-subsistence
- measure-of-exchangeable-value
- mediterranean-civilisation-pattern
- menial-servants
- merchant
- merchant-country-gentleman-transition
- metal-currency
- metayer
- military-assistance
- military-discipline
- military-employment
- mine-fertility
- mine-situation
- mint
- mint-price
- modern-states-inversion
- modes-of-expense-affecting-public-opulence
- money
- money-rent
- moneys-worth
- monied-interest
- monopoly-effects-on-market-price
- monopoly-price-of-land
- mutual-gain-reciprocity
- mutual-good-offices
- mutual-servitude
- natural-complement-of-riches
- natural-course-of-things
- natural-development-sequence
- natural-inclinations-thwarting
- natural-liberty-in-banking
- natural-market-advantages
- natural-order-inversion
- natural-order-of-economic-development
- natural-preference-cultivation
- natural-price-as-central-price
- natural-price-of-commodities
- natural-produce-of-land
- natural-progress-of-improvement
- natural-rates-of-wages-profit-and-rent
- natural-rent-of-land
- natural-state-of-employments
- navigable-rivers
- neat-revenue
- necessity
- nominal-measure-of-value
- nominal-price-of-commodities
- non-standard-metal
- occasional-and-temporary-market-fluctuations
- ordinary-market-price-of-land
- ordinary-rates-of-wages-profit-and-rent
- ordinary-state-of-employments
- original-destination-of-man
- original-government-manners
- overstocked-market-conditions
- paper-money
- pasture-land
- payment-in-kind
- perfect-liberty-in-trade
- permanent-market-price-enhancements
- perpetual-fund-for-maintenance-of-labour
- piece-work-wages
- pin-maker-trade
- planter-independence
- poacher
- poll-tax
- poll-tax-compensation
- potato-cultivation
- precious-metals-consumption
- price-in-labour
- price-in-money
- price-of-commodities
- prime-cost-of-commodities
- principal-clerk
- principal-employments
- private-misconduct-versus-public-prodigality
- prodigals
- prodigals-and-projectors
- productive-abilities
- productive-and-unproductive-labour
- productive-labourers
- productive-powers-of-labour
- profits-of-stock
- progressive-state-of-society
- progressive-wealth-consequentiality
- promissory-notes
- proportion-between-metals
- proportion-between-productive-and-unproductive-hands
- public-education-of-professionals
- public-executioner
- public-fiars
- public-law-on-coinage
- public-lottery
- public-mourning-effects
- public-registers-of-manufactures
- purveyance
- quantity-of-labour
- rate-of-interest
- rate-of-profit
- real-measure-of-value
- real-price-of-commodities
- real-value-of-corn-rent
- regulated-proportion
- religious-occupational-restrictions
- rent-of-land
- requisite-variety-in-banking
- retail-trade
- retailers
- retainers-and-dependents-system
- revenue
- revenue-constituting-profit-and-rent
- revenue-destined-for-capital-replacement
- rice-countries
- river-navigation-infrastructure
- rude-produce
- rural-urban-reciprocity
- scarcity-of-hands
- sea-coast-development
- security-preference-capital
- seed-as-fixed-capital
- seignorage
- self-love
- servile-condition
- settlement-laws
- silver-money
- silver-price-variation
- skill-and-dexterity
- smuggling-trade
- sober-people
- societys-general-stock
- spare-revenue
- species-of-industry-with-consistent-output
- species-of-industry-with-variable-output
- speculative-trade
- stamp-masters
- standard-metal
- standard-weight-of-coin
- stationary-country
- statute-of-labourers
- statutes-of-apprenticeship-effects
- sterling-mark
- stock
- stock-lent-at-interest
- stock-of-the-country
- stock-of-the-farmer
- subsistence
- subsistence-agriculture
- subsistence-industry-priority
- subsistence-necessity-priority
- subsistence-of-the-dealer
- subsistence-prioritization
- sugar-colonies
- superfluity
- superior-hardship-and-superior-skill
- surplus-produce
- taille
- tale
- temporary-price-of-corn
- territorial-cultivation-completeness
- territorial-cultivation-limit
- territorial-improvement-support
- territorial-support-limitation
- three-original-sources-of-revenue
- three-way-employment-of-stock
- thriving-country
- tobacco-colonies
- toil-and-trouble-of-acquiring
- town-country-dependency
- town-market-function
- town-reproduction-impossibility
- trade-capital
- trade-encouragement
- trade-route-dependency
- transportation-cost-differential
- transportation-infrastructure-importance
- transportation-mode-economic-effects
- treasure-trove
- treaty
- truck
- two-branches-of-circulation
- uncultivated-land-availability
- unimproved-land
- university-of-trades
- unproductive-labourers
- unstamped-bars
- urban-autonomy
- urban-rural-reciprocity
- usury
- value-in-exchange
- value-in-use
- value-of-gold
- value-of-silver
- variety-of-talents
- venison
- victuals
- villeinage
- vineyard
- wages-of-a-journeyman
- wages-of-labour
- waggon-way-through-the-air-metaphor
- water-carriage
- water-pond-metaphor
- weighing
- whole-produce-of-labour
- wholesale-merchants
- wholesale-trade
- wood-price
- wool-grower

## Instructions

1. Read the source chapter carefully.
2. Review the list of existing entities above and do not duplicate them.
3. Identify all distinct economic concepts, actors, mechanisms, and institutions
   that are NOT already in the existing entities list.
4. For each new entity, produce a separate markdown document following the
   Economic Entity Schema v1.0.
5. Each entity document must include:
   - An H1 heading with the entity name
   - A Definition section (20-150 words)
   - A Source Chapter section citing the specific chapter
   - A Context section describing where in the argument the entity appears
   - An Economic Domain section classifying the entity
6. Optionally include Smith's Original Wording (direct quote) and
   Modern Interpretation sections.
7. Use neutral, analytical language throughout.
8. Ensure each entity is distinct and self-contained.

## Output Format

Output each entity as a separate markdown document, delimited by
`--- ENTITY: <entity-name> ---` markers.

Use **H2 headings** (`##`) for each section inside the entity document.
Do NOT use inline `Section:` format or H3 headings.

Example of a correctly formatted entity:

```
--- ENTITY: division of labour ---

# Division of Labour

## Definition

The separation of a work process into distinct tasks performed by specialised
workers, increasing productivity through greater dexterity, saved time, and
the invention of labour-saving machinery.

## Source Chapter

Book I, Chapter 1

## Context

The opening chapter's central argument, illustrated by Smith's pin factory
example showing how dividing 18 operations dramatically increases output.

## Economic Domain

Production

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