The Theory of Earned and Unearned Incomes; A Study of the Economic Laws of Distribution with Some of Their Applications to Social Policy
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The Theory of Earned and Unearned Incomes; A Study of the Economic Laws of Distribution with Some of Their Applications to Social Policy

The Theory of Earned and Unearned Incomes; A Study of the Economic Laws of Distribution with Some of Their Applications to Social Policy


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About the Book

This historic book may have numerous typos and missing text. Purchasers can download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1918. Excerpt: ... 8 Summary In this chapter we have endeavored to trace the influences bearing upon value and price back to their more remote origins. Since supply of one good means demand for others, it appeared that there could not be a general oversupply of all goods but that an oversupply of some means merely a relative undersupply of others. Demand for any good involves a willingness to sacrifice something in order to get it. The sacrifice may take the form of extra effort or of giving up some alternative good. At any price the demand of each purchaser is for so much of the good that another unit of it would be worth no more than the price paid in money, and, therefore, in labor or in other goods. A high price of any article would tend to reduce demand for it not only by discouraging its consumption but also by causing many who would else be purchasers of it to become instead producers of it. In this sense, demand for any good depends upon its cost of production. Purchasers will not, in the long run, pay more for a good than the amount of other goods which the same productive effort and other sacrifice will produce. The prices at which there may be demand for a non-reproducible good, are not thus limited. The supply of any good depends upon the price offered, and upon the intensity of demand of the producers of it for the other goods they indirectly get through its sale. A higher price will not of necessity always cause producers to work longer or harder at their task. It may encourage them to reduce their hours of work since it may enable them to earn more than before in fewer hours than before. But a higher price will usually increase the amount of any good produced since it will usually increase the number of persons producing that good by diverting some fro...


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Product Details
  • ISBN-13: 9781150854583
  • Publisher: General Books
  • Publisher Imprint: General Books
  • Height: 246 mm
  • No of Pages: 70
  • Spine Width: 4 mm
  • Width: 189 mm
  • ISBN-10: 1150854588
  • Publisher Date: 04 Feb 2012
  • Binding: Paperback
  • Language: English
  • Returnable: N
  • Weight: 141 gr

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The Theory of Earned and Unearned Incomes; A Study of the Economic Laws of Distribution with Some of Their Applications to Social Policy
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