FRR 
  
  
  
  
14 NATURE OF CAPITAL AND INCOME [CHae. I 
or “subjective value’). It seems preferable to conform 
our definitions of value and price as closely as possible to 
business usage, which instinctively and consistently applies 
the term “ price’’ to the unit and “value” to the aggregate. 
§7 
The distinction between quantity, price, and value of 
wealth may be seen clearly in any “inventory,” such as the 
following : — 
  
  
  
  
Soin PRICE IN VALUE IN 
QUANTITY WHEAT WHEAT 
Shoes... os 0 1000:pair 41 bu. per pair 4,250 bu. 
Baal. oo oi, oad 300bs, bu. per lb. 60 bu. 
Dwelling House . . . | 1house | 10,000 bu. per house | 10,000 bu. 
Wheat... = 4 100 bu. 1 bu. per bu. 100 bu. 
14,410 bu. 
  
  
  
  
  
In the first column are recorded various quantities 
of wealth, measured each in its own special unit ; in the sec- 
ond column are the prices of these in wheat; while in the 
last column are their values, also in terms of wheat. The 
first and last columns represent two different modes of meas- 
uring wealth. Statistics of wealth, such as those published 
monthly by the Department of Commerce, usually give 
both “quantities” and “values.” To translate from one 
to the other we need always a price as go-between. 
It is important not to confuse the three columns with 
each other. The quantity of beef is a totally different thing 
from its value, and each of these is different from its price. 
The quantity is measured in pounds of beef, its value in 
bushels of wheat, and its price in bushels per pound. These 
three magnitudes are all of different “dimensions.” Both 
quantity and value are simply physical magnitudes. 
“Value” as here explained is not a subjective magnitude 
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