The following statements are, given certain assumptions, either true, false, or partly true and partly false. State which is the case and give your reasons. It is the accuracy of your reasons that principally determines your grade.

10. (10 points) According to Smith, in early America's thriving state under abundant land, the growth of capital is very fast since the profit rate is above the minimum profit rate, but labor is not doing well, since the wage is kept at subsistence by a European hinterland that supplies immigrants.