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Additional resources for Essentials of Economic Theory, as Applied to Modern Problems of Industry and Public Policy
Sample text
Let the hours of the working day be counted along the line AD, amI let us suppose that a man gets unit after unit of consumers' wealth, as he works 46 ESSENTIALS OF ECONOMIC THEORY hour after hour, and the units grow less and less important. The first and most important we may measure by the vertical line AB. The second is worth less, the third still less, and the last one is worth only the amount CD. This means that the successive units of what we may call general commodity for personal use have declined in utility along the curve BC.
Organized Industry immediately Productive of Consumers' Goods. - If one man were keeping the stock of canoes of a few fishermen in repair and taking as his pay a share of each day's catch, he would not have to wait for his food any longer than the fishermen themselves. This mode of conducting the industry, however, involves organization. If each fisherman had to make his first canoe, it would be necessary for him to wait for fish; but as soon as a stock of canoes has been obtained and a special set of men assigned to the work of keeping this stock intact in number and quality, that necessity entirely ceases.
Which are imparting utility, are what he can point to as now constituting his fixed capital. At a later time there will be other goods of both kinds in his possession, and these will at that time embody the two kinds of capital. While a primitive man would have little occasion to use the term capital goods, he would possess both varieties of the goods which the term denotes. Varieties of Active Capital Goods. - Mere hand tools act as armatures attached to the person of the worker, and they enable him effectively to attack resisting substances.