Lesson 6: The Production of Wealth
Please read Part III, Chapters 1 - 6

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1. What is production, in political economy? Are transportation and exchange part of production?    (Part III, Chapter 1) 

2. Name and define the three modes of production, in the order that they naturally arise.   (Part III, Chapter 2) 

3. Why did George place so much stress in correcting the mistake expressed in "the alleged law of diminishing returns in agriculture? What was the mistake?   (Part III, Chapter 3) 

4. Why is it necessary to consider the meanings of space and time in political economy?   (Part III, Chapter 4) 

5. a) What kind of relation is space?   (Part III, Chapter 4) 

    b) What kind of relation is time?   (Part III, Chapter 4) 

6. What fallacy as to the nature of land has persisted among economists?   (Part III, Chapter 5) 

7. a) Explain why there are diminishing returns beyond a point of maximum productivity in all forms of production.   (Part III, Chapter 5) 

    b) Illustrate the law of diminishing returns with an example from some form of production.   (Part III, Chapter 5) 

8. How is the principle of diminishing returns used to make profit-maximixing decisions?   (Part III, Chapter 5) 

9. Is there a law of diminishing returns in time as well as in space? Illustrate.   (Part III, Chapter 6)