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Economic System Effectiveness

Definition

The degree to which economic arrangements achieve their intended objectives, particularly the provision of subsistence for the people and the generation of sufficient revenue for public services, as measured by their outcomes and practical results.

Source Chapter

Book IV, Chapter 0

Context

Smith's framework for understanding political economy implies the importance of evaluating different systems based on their effectiveness in achieving the stated objectives of enriching both the people and the sovereign.

Economic Domain

General Theory