823 B
823 B
Equal Profit Employment Choice
Definition
The economic preference of capital owners to employ their resources in land improvement rather than manufacturing or foreign trade when profits are equal across these options. This preference reflects the greater security, visibility, and control associated with agricultural investment compared to commercial alternatives.
Source Chapter
Book III, Chapter 1
Context
Smith presents this as evidence of the natural order of economic development, demonstrating how security considerations and natural preferences influence capital allocation decisions even when purely financial returns are equivalent.
Economic Domain
Accumulation