CONTENTS

CHAPTER 1

INTRODUCTORY

AUTHORITIES
Cossa , . . ‘“An Introduction to the Study of Political Economy.”
BaGEHOT . . ‘‘ Economic Studies,” Essays I. II. III. .
Keynes . . “The Scope and Method of Political Economy.”
MARSHALL . ¢ Princinles of Economics.” Books I. and II.

PAGES
[n economics, we study the complex organisation of communities, the
sources of their wealth, the shares claimable by their members, and
the-allocation of tasks to individuals which result from the choice of
occupation freely exercised under the stimulus of the rewards obtainable.
Though not entirely free, this choice is effective in its exercise. Goods
defined. Personal qualities conducing to effective production
considered. National and individual wealth. Productive and unproductive
 labour. The necessaries of physical existence are not more
rigorously required than conventional necessaries. Waste. Value in
use and value in exchange. Wealth comprises valuable utilities. Exchange
 the pivot on which modern economic life tums. Divisions of
the subject: production, distribution and exchange, consumption,
The historical and a priori methods of study mutually helpful.
Premises of economic argument, Action from self-regarding motives,
the principle of population, the principles of diminishing returns and
of diminishing utility, intelligent action and competition. Not all
these universally applicable, even if generally so, Capital the means
of future production. Income of direct satisfactions or of money.
Trade-capital and consumption capital. Land not capital, though much
of its value is due to capital .

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