ELEMENTS OF POLITICAL

ECONOMY
 FOUR QUESTIONS
1. What are the laws which regulate the production of commodities?
Labor produced commodities for
consumption by cooperating with nature.
Capital is ultimately derived from labor.
Without saving there will be no production.
2. What are the laws according to
which the commodities produced by
the labor of the community are
distributed?
The rate of wages depends on the proportion
between population and employment, in other
words capital. The rent to be paid to the land
owners are related to the productivity of the land.
Forcibly making the capital increase than its natural
tendency would not produce desirable effects.
3. What are the laws according to which
commodities are exchanged for one another?
The quantity and in which commodities
exchange for one another depends upon the
proportion of supply to demand. The cost
of production regulates the value of
commodities.
4. What are the laws which regulate
consumption?
• Consumption is essential in production. What
annually produced is annually consumed.

• Consumption is either productive (use materials

to produce more materials) or unproductive (use
material for short term enjoyment)