The nature of capital and income

Bibliographic data

Monograph

Identifikator:: 102659555X

URN:: urn:nbn:de:zbw-retromon-82920

Document type:: Monograph

Author:: Fisher, Irving http://d-nb.info/gnd/118533541

Title:: The nature of capital and income

Place of publication:: New York

Publisher:: The Macmillan Company

Year of publication:: 1923

Scope:: XXI, 427 Seiten

Digitisation:: 2019

Collection:: Economics Books

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Document type:: Monograph

Structure type:: Chapter

Title:: Introduction. Fundamental concepts

Collection:: Economics Books

Ske. 5) WEALTH 11 Exchange of wealth, then, means the mutual and volun- tary transfer of wealth between two owners, each transfer being wn consideration of the other. If either of the two quanti- ties of wealth exchanged is divided by the other, the quotient is called the price of the latter. Thus, when three bushels of wheat are traded for two dollars of gold, the price of the wheat is 2 of a dollar per bushel, and the price of the gold is 1% bushels of wheat per dollar. In modern times, one of the two articles is usually money, but this condition is not essential, and in primitive times was not even common. When the exchange is one of money for other wealth, it is called a purchase (with reference to the one who parts with the money) and a sale (with reference to the person who receives the money). § 5 In order that there may be a price, it is not necessary that the exchange in question should actually take place. It may be only a contemplated exchange. A real estate agent often has an “asking price,” that is, a price at which he tries to sell, usually above the price of an actual sale. In the same way there is often a “bidding price,” which is usually below the price of actual sale. The price of sale thus generally lies between the prices first bid and asked. But it sometimes happens that the bidder refuses to raise his bid and the seller refuses to lower his asking price. In such a case no sale takes place and the only prices are those bid and asked. Trade journals report, for many commodities, the price of sale if there is a sale, otherwise the two prices bid and asked, or if both do not exist, the one which does. When there is no sale, and especially when there is no price bid or asked, it is not so easy to answer the question, What is the price? Recourse is then had to an “appraise- ment’ or appraisal, which is simply a more or less skilful

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