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Economic System Mechanism

Definition

The specific processes, procedures, and operational methods through which economic arrangements function and produce their effects, including the concrete ways in which resources are allocated, decisions are made, and objectives are achieved within different economic systems.

Source Chapter

Book IV, Chapter 0

Context

Smith's intention to explain both systems fully and distinctly implies the importance of understanding the specific mechanisms through which different economic arrangements operate and achieve their objectives.

Economic Domain

General Theory