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L E C T U R E:
P R O D U C T I O N
V E R S U S
C O N S U M P T I O N
The whole annual produce of every county is distributed
into two great parts; that which is destined to be employed
for the purpose of reproduction, and that which is destined
to be consumed. That part which is destined to serve for
reproduction, naturally, appears again next year, with its
profit. This reproduction, with the profit, is naturally the
whole produce of the country for that year.- James Mill
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Progress is movement in the direction
of a higher, better and more desirable
state of affairs.
All of technological and economic
progress is a confirmation of the fact
that the discoveries of later generations
add to the discoveries of previous
ones.
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DEFINITION: Wealth is material
goods made by man. The meaning of
wealth depends on the meaning of
goods
DEFINITION: Economic Goods are
things which are recognised as capableof satisfying human needs,
requiring the
expenditure of labour or effort in order
to be produced or enjoyed, and over
which one has sufficient commandgainfully to direct them to
the
satisfaction of human ends.
DEFINITION: Capital is wealth
reproductively employed. In a division-of-labour society,
capital is the wealth
employed by business enterprises.
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Productive Activity is activity the
purpose of which is the earning of
money
Consumptive Production is activity
that is physically productive but is not
carried on for the purposes of earningmoney
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Capital Goods are goods purchased forthe purpose of making
subsequent sales,
and, by extension, goods produced, with
means of production that have been
purchased, for the purpose of making
subsequent sales.
Consumers goods are goods
purchased notfor the purpose of making
subsequent sales, and, by extension,
goods produced, with means of
production that have been purchased, not
for the purpose of making subsequent
sales.
Saving is the use of revenue or income
by a business or individual for purposes
other than expenditure on consumers
goods (or consumers services). It is
revenue or income that is not consumed.
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The whole annual produce of every county is
distributed into two great parts; that which is
destined to be employed for the purpose ofreproduction, and that
which is destined to be
consumed. That part which is destined to serve
for reproduction, naturally, appears again
next year, with its profit. This reproduction,
with the profit, is naturally the whole produce
of the country for that year.- James Mill
