Principles of Political Economy / Abridged with Critical, Bibliographical, and Explanatory Notes, and a Sketch of the History of Political Economy

by John Stuart Mill

3. Explain the following terms: Real Wages, Fixed Capital, Allowance System, Margin of Cultivation, Price, Demand, Medium of Exchange, Seignorage, Value of Money, and Bill of Exchange.

4. Define Supply, Value of Money, Productive Consumption, Cost of Production, Cost of Labor, Exchange Value, Law of Production from Land, Rate of Profit, Capital, and Gresham's Law.

5. Define Political Economy: State the parts into which it may be divided, and show how they are mutually related.

Labor.

6. Distinguish between direct and indirect labor, and give an illustration of the distinction.

7. Apply the distinction between productive and unproductive labor, and productive and unproductive consumption, respectively, to each of [pg 638] the following persons: a tailor, an architect, an annuitant, a sailor, and a brick-layer.

8. Is an actor to be classed as a productive laborer? The inventor of a machine? A confectioner?

9. In which of the two classes of laborers, productive and unproductive, would you place the following?

	(1.) The officers of our Government.
	(2.) The maker of an organ.
	(3.) An organist.
	(4.) A schoolmaster.
	(5.) An artist.
	(6.) He who makes an article for which there is no use.

10. Classify as productive or unproductive the following laborers: a clergyman, musical-instrument maker, actor, soldier, and lace-maker.