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

Usage license:: Get license information via the feedback formular.

Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Introduction. Fundamental concepts

Collection:: Economics Books

Ske. 6] WEALTH 13 § 6 Having obtained the price of any kind of wealth, we may compute the value of any given quantity of that wealth, without necessarily supposing that particular quantity to be exchanged. The value of a given quantity of wealth is found by multiplying the quantity by the price. Thus, if the price of wheat is % of a dollar per bushel, then a lot consisting of 3000 bushels would have a value of 3000 x % per bushel or $2000. In other words, the value of a certain amount of one kind of wealth is the quantity of some other kind for which it would be exchanged, if the whole amount were exchanged at the price set upon it. The exchange which sets the price need not be the ex- change of the particular 3000 bushels which we are valuing ; some other exchange of, say, 300 bushels for $200 may set the price. This is one reason why it is preferable to ex- plain price first and value afterward. The definition of value which has been given, applying, as it does, to an aggregate of wealth instead of the unit, departs somewhat from economic usage; but it follows closely the usage of business men and practical statisti- cians. Economists have not usually thought it necessary to distinguish between the purchasing power of the unit and the aggregate, but have employed the term “value” indiscriminately to both. In other respects also their usage has been somewhat different from that here employed. Some of them have confined “price” to a money expression, v.e. to what is here called money price, and applied the term “value” to purchasing power in “goods.” Others have used the term “price” in the sense of what an article ac- tually sells for (market price) and “value” in the sense of what it ought to sell for (appraised price or reasonable price). Others, in turn, have used the term ““price’’ in the sense em- ployed in this book, but “value” in the sense of the degree of esteem in which an article is held (“marginal utility”

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