been to expound to intelligent readers, previously
unfamiliar with the subject, the most significant elements of economic
method. Most of the omissions of matter often treated in textbooks are
intentional; for as a subject develops, it is important, especially in
books meant to be introductory, to discard the marks of the chrysalid
stage before thought had wings.

Even on matters of principle there is not yet a complete unanimity of
opinion amongst professors. Generally speaking, the writers of these
volumes believe themselves to be orthodox members of the Cambridge
School of Economics. At any rate, most of their ideas about the
subject, and even their prejudices, are traceable to the contact they
have enjoyed with the writings and lectures of the two economists who
have chiefly influenced Cambridge thought for the past fifty years,
Dr. Marshall and Professor Pigou.

J.M. Keynes.

CONTENTS

CHAPTER I

THE ECONOMIC WORLD

Sec.1. THEORY AND FACT

Sec.2. THE DIVISION OF LABOR

Sec.3. THE EXISTENCE OF ORDER

Sec.4. SOME REFLECTIONS UPON JOINT PRODUCTS

Sec.5. SOME REFLECTIONS UPON CAPITAL

Sec.6. THE FUNDAMENTAL CHARACTER OF MANY ECONOMIC LAWS

CHAPTER II

THE GENERAL LAWS OF SUPPLY AND DEMAND

Sec.1. PRELIMINARY STATEMENT OF THREE LAWS

Sec.2. DIAGRAMS AND THEIR USES

Sec.3. AMBIGUITIES OF THE EXPRESSIONS, "INCREASE IN DEMAND," ETC.

Sec.4. REACTIONS OF CHANGES IN DEMAND AND SUPPLY ON PRICE

Sec.5. SOME PARADOXICAL REACTIONS OF PRICE CHANGES ON SUPPLY

Sec.6. THE DISTURBANCES OF MONETARY CHANGES

Sec.7. THE TRADE CYCLE

CHAPTER III

UTILITY AND THE MARGIN OF CONSUMPTION

Sec.1. THE FORCES BEHIND SUPPLY AND DEMAND

Sec.2. THE LAW OF DIMINISHING UTILITY

Sec.3. THE RELATION BETWEEN PRICE AND MARGINAL UTILITY

Sec.4. THE MARGINAL PURCHASER

Sec.5. THE BUSINESS MAN AS PURCHASER

Sec.6. THE DIMINISHING UTILITY OF MONEY

CHAPTER IV

COST AND THE MARGIN OF PRODUCTION

Sec.1. AN ILLUSTRATION FROM COAL

Sec.2. THE VARIOUS ASPECTS OF MARGINAL COST

Sec.3. THE DANGERS OF IGNORING THE MARGIN

Sec.4. A MISINTERPRETATION

Sec.5. SOME CONSEQUENCES OF A HIGHER PRICE LEVEL

Sec.6. GENERAL RELATION BETWEEN PRICE, UTILITY AND COST

CHAPTER V

JOINT DEMAND AND SUPPLY

Sec.1. MARGINAL COST UNDER JOINT SUPPLY

Sec.2. MARGINAL UTILITY UNDER JOINT DEMAND

Sec.3. A CONTRAST BETWEEN COTTON AND COTTON-SEED, AND WOOL AND MUTTON

Sec.4. THE IMPORTANCE OF BEING UNIMPORTANT

Se