The Theory of Political Economy
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due to allowing the produce to remain invested a little longer. The increment of capitalisation is obtained by varying the time. The most convenient symbolic expression for the marginal productivity of capitalisation in this case would seem to be , where c is capital in terms of money, t is time, and p is produce in money. In the second case the produce of a certain amount of labour does not mature merely by the operation of a natural process, but requires the application of further labour, with
feelings have two dimensions, intensity and duration. A pleasure or a pain may be either weak or intense in any indivisible moment; it may also last a long or a short time. If the intensity remain uniform, the quantity of feeling generated is found by multiplying the units of intensity into the units of duration. But if the intensity, as is usually the case, varies as some function of the time, the quantity of feeling is got by infinitesimal summation or integration. Thus, if the duration of a
to B and x2 to C, B ,, y1 of b to A, C ,, y2 of c to A. As each commodity may be supposed to be perfectly homogeneous, the ratio of exchange must be the same in one case as in the other, so that we have one equation thus furnished— Now, provided that A gets the right commodity in the proper quantity, he does not care whence it comes, so that we need not, in his equation, distinguish the source or destination of the quantities; he simply gives x1 + x2, and receives in exchange y1 + y2.
equally to be remembered that labour is itself of unequal value. Ricardo, by a violent assumption, founded his theory of value on quantities of labour considered as one uniform thing. He was aware that labour differs infinitely in quality and efficiency, so that each kind is more or less scarce, and is consequently paid at a higher or lower rate of wages. He regarded these differences as disturbing circumstances which would have to be allowed for; but his theory rests on the assumed equality of
quantities exchanged, it follows that the values per unit are directly proportional to the final degrees of utility. As it is quite indispensable that the student of political economy should keep the relations of these quantities before his mind with perfect clearness, I repeat the results in several forms of statement. Thus we may group the ratios together— We may state the matter more briefly in the following words:—The quantities of commodity given or received in exchange are directly