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Much higher real costs on a labour.] however it is more important Distinction between the prices of goods, acquired by workers on the wage Payment, and prices of goods in which production their work is used. Main sources of this distinction the following:
1. Though on "cost-of-living" the basic influence is rendered by the prices
Agricultural production, to us for our problem mainly are important
The prices of industrial items. In the more general sense the importance for our problem
Changes of the prices for any concrete product varies depending on
Relative size of the capital used in its production (it
It is rather low in agriculture and it is rather high in
The industries). Importance of it becomes obvious if to recollect that for
Our problem simple switching of demand from the items requiring for
Productions of rather small capital, to the items requiring much
- , would have the same effect, as aggregate demand expansion. To everyone
To the statistical analysis followed concentrate first of all on
Effect of changes in the ratio between the prices for products and wage
Payment in any individual industry on the investment into this branch. When
The more general research, the prices, possibly is undertaken, it is necessary to weigh
According to a share of the capital used in production of the various goods.
When we should deal with "open system" that will be constant
To occur at statistical researches, it is necessary to conduct
Additional differentiation between prices of goods of local production and
2. Though from the point of view of "cost-of-living" retail prices will be significant, for
Our problem the prices paid by manufacturers and participating them will be important
Accounts, and in general it is known that last (on all occasions, wholesale prices)
Fluctuate more strongly, than retail, for the reasons in which it is not required to us
Here to press.
3. Though from the point of view of "cost-of-living" the relation is significant between
Wages and the price for the fixed quantity of the goods, us here
The relation between costs on a labour and its limiting interests
Product. This limiting product nevertheless in itself is not
Constant, but a variable also can or vary owing to
Effect considered by us, or because of the change to become
The reason of this effect. Differently, changes of a limiting product can
To act or as dependent variables when they are a change consequence
Proportions in which the capital and work, or as independent are combined
Variables when they are caused by changes in "data", especially changes
In technical knowledge. Technical progress, especially when it general and
Fast, can seriously complicate our problem.
While technical knowledge remains without changes, a parity between costs
On a labour and by its product, significant for our problem, will be, in
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