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Marshall, Alfred, Principles of Economics, 1890 The Online Library of Liberty A Project Of Liberty Fund, Inc. Alfred Marshall, Principles of Economics (8th ed.) [1890] The Online Library Of Liberty This E-Book (PDF format) is published by Liberty Fund, Inc., a private, non-profit, educational foundation established in 1960 to encourage study of the ideal of a society of free and responsible individuals. 2010 was the 50th anniversary year of the founding of Liberty Fund. It is part of the Online Library of Liberty web site http://oll.libertyfund.org, which was established in 2004 in order to further the educational goals of Liberty Fund, Inc. To find out more about the author or title, to use the site's powerful search engine, to see other titles in other formats (HTML, facsimile PDF), or to make use of the hundreds of essays, educational aids, and study guides, please visit the OLL web site. This title is also part of the Portable Library of Liberty DVD which contains over 1,000 books and quotes about liberty and power, and is available free of charge upon request. The cuneiform inscription that appears in the logo and serves as a design element in all Liberty Fund books and web sites is the earliest-known written appearance of the word “freedom” (amagi), or “liberty.” It is taken from a clay document written about 2300 B.C. in the Sumerian city-state of Lagash, in present day Iraq. To find out more about Liberty Fund, Inc., or the Online Library of Liberty Project, please contact the Director at [email protected]. LIBERTY FUND, INC. 8335 Allison Pointe Trail, Suite 300 Indianapolis, Indiana 46250-1684 Online Library of Liberty: Principles of Economics (8th ed.) Edition Used: Principles of Economics (London: Macmillan and Co. 8th ed. 1920). Author: Alfred Marshall About This Title: This is the 8th edition of what is regarded to be the first “modern” economics textbook, leading in various editions from the 19th into the 20th century. The final 8th edition was Marshall’s most-used and most-cited. PLL v6.0 (generated September, 2011) 2 http://oll.libertyfund.org/title/1676 Online Library of Liberty: Principles of Economics (8th ed.) About Liberty Fund: Liberty Fund, Inc. is a private, educational foundation established to encourage the study of the ideal of a society of free and responsible individuals. Copyright Information: The text is in the public domain. Fair Use Statement: This material is put online to further the educational goals of Liberty Fund, Inc. Unless otherwise stated in the Copyright Information section above, this material may be used freely for educational and academic purposes. It may not be used in any way for profit. PLL v6.0 (generated September, 2011) 3 http://oll.libertyfund.org/title/1676 Online Library of Liberty: Principles of Economics (8th ed.) Table Of Contents Book I: Preliminary Survey. Book I, Chapter I: Introduction. Book I, Chapter II: The Substance of Economics. Book I, Chapter III: Economic Generalizations Or Laws. Book I, Chapter IV: The Order and Aims of Economic Studies. Book II: Some Fundamental Notions. Book Ii, Chapter I: Introductory. Book Ii, Chapter II: Wealth. Book Ii, Chapter III: Production. Consumption. Labour. Necessaries. Book Ii, Chapter IV: Income. Capital. Book III: On Wants and Their Satisfaction. Book Iii, Chapter I: Introductory. Book Iii, Chapter II: Wants In Relation to Activities. Book Iii, Chapter III: Gradations of Consumers' Demand. Book Iii, Chapter IV: The Elasticity of Wants. Book Iii, Chapter V: Choice Between Different Uses of the Same Thing. Immediate and Deferred Uses. Book Iii, Chapter VI: Value and Utility. Book IV: The Agents of Production. Land, Labour, Capital and Organization. Book Iv, Chapter I: Introductory. Book Iv, Chapter II: The Fertility of Land. Book Iv, Chapter III: The Fertility of Land, Continued. the Tendency to Diminishing Return. Book Iv, Chapter IV: The Growth of Population. Book Iv, Chapter V: The Health and Strength of the Population. Book Iv, Chapter VI: Industrial Training. Book Iv, Chapter VII: The Growth of Wealth. Book Iv, Chapter VIII: Industrial Organization. Book Iv, Chapter IX: Industrial Organization, Continued. Division of Labour. the Influence of Machinery. Book Iv, Chapter X: Industrial Organization, Continued. the Concentration of Specialized Industries In Particular Localities. Book Iv, Chapter XI: Industrial Organization, Continued. Production On a Large Scale. Book Iv, Chapter XII: Industrial Organization, Continued. Business Management. Book Iv, Chapter XIII: Conclusion. Correlation of the Tendencies to Increasing and to Diminishing Return. Book V: General Relations of Demand, Supply and Value. Book V, Chapter I: Introductory. On Markets. Book V, Chapter II: Temporary Equilibrium of Demand and Supply. Book V, Chapter III: Equilibrium of Normal Demand and Supply. Book V, Chapter IV: The Investment and Distribution of Resources. PLL v6.0 (generated September, 2011) 4 http://oll.libertyfund.org/title/1676 Online Library of Liberty: Principles of Economics (8th ed.) Book V, Chapter V: Equilibrium of Normal Demand and Supply, Continued, With Reference to Long and Short Periods. Book V, Chapter VI: Joint and Composite Demand. Joint and Composite Supply. Book V, Chapter VII: Prime and Total Cost In Relation to Joint Products. Cost of Marketing. Insurance Against Risk. Cost of Reproduction. Book V, Chapter VIII: Marginal Costs In Relation to Values. General Principles. Book V, Chapter IX: Marginal Costs In Relation to Values. General Principles, Continued. Book V, Chapter X: Marginal Costs In Relation to Agricultural Values. Book V, Chapter XI: Marginal Costs In Relation to Urban Values. Book V, Chapter XII: Equilibrium of Normal Demand and Supply, Continued, With Reference to the Law of Increasing Return. Book V, Chapter XIII: Theory of Changes of Normal Demand and Supply In Relation to the Doctrine of Maximum Satisfaction. Book V, Chapter XIV: The Theory of Monopolies. Book V, Chapter XV: Summary of the General Theory of Equilibrium of Demand and Supply. Book VI: The Distribution of the National Income. Book Vi, Chapter I: Preliminary Survey of Distribution. Book Vi, Chapter II: Preliminary Survey of Distribution, Continued. Book Vi, Chapter III: Earnings of Labour. Book Vi, Chapter IV: Earnings of Labour, Continued. Book Vi, Chapter V: Earnings of Labour, Continued. Book Vi, Chapter VI: Interest of Capital. Book Vi, Chapter VII: Profits of Capital and Business Power. Book Vi, Chapter VIII: Profits of Capital and Business Power, Continued. Book Vi, Chapter IX: Rent of Land. Book Vi, Chapter X: Land Tenure. Book Vi, Chapter XI: General View of Distribution. Book Vi, Chapter XII: General Influences of Economic Progress. Book Vi, Chapter XIII: Progress In Relation to Standards of Life. Appendix a the Growth of Free Industry and Enterprise. Appendix B 33 the Growth of Economic Science. Appendix C 51 the Scope and Method of Economics. Appendix D 57 Uses of Abstract Reasoning In Economics. Appendix E 58 Definitions of Capital. Appendix F Barter 63 . Appendix G 64 the Incidence of Local Rates, With Some Suggestions As to Policy. Appendix H 76 Limitations of the Use of Statical Assumptions In Regard to Increasing Return. Appendix I 87 Ricardo's Theory of Value. Appendix J 92 the Doctrine of the Wages-fund. Appendix K Certain Kinds of Surplus. Appendix L 101 Ricardo's Doctrine As to Taxes and Improvements In Agriculture. PLL v6.0 (generated September, 2011) 5 http://oll.libertyfund.org/title/1676 Online Library of Liberty: Principles of Economics (8th ed.) [Back to Table of Contents] BOOK I PRELIMINARY SURVEY. BOOK I, CHAPTER I INTRODUCTION. § 1. Political Economy or Economics is a study of mankind in the ordinary business of life; it examines that part of individual and social action which is most closely connected with the attainment and with the use of the material requisites of wellbeing. Thus it is on the one side a study of wealth; and on the other, and more important side, a part of the study of man. For man's character has been moulded by his every-day work, and the material resources which he thereby procures, more than by any other influence unless it be that of his religious ideals; and the two great forming agencies of the world's history have been the religious and the economic. Here and there the ardour of the military or the artistic spirit has been for a while predominant: but religious and economic influences have nowhere been displaced from the front rank even for a time; and they have nearly always been more important than all others put together. Religious motives are more intense than economic, but their direct action seldom extends over so large a part of life. For the business by which a person earns his livelihood generally fills his thoughts during by far the greater part of those hours in which his mind is at its best; during them his character is being formed by the way in which he uses his faculties in his work, by the thoughts and the feelings which it suggests, and by his relations to his associates in work, his employers or his employees. And very often the influence exerted on a person's character by the amount of his income is hardly less, if it is less, than that exerted by the way in which it is earned. It may make little difference to the fulness of life of a family whether its yearly income is £1000 or £5000; but it makes a very great difference whether the income is £30 or £150: for with £150 the family has, with £30 it has not, the material conditions of a complete life. It is true that in religion, in the family affections and in friendship, even the poor may find scope for many of those faculties which are the source of the highest happiness.
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