Showing posts with label capital. Show all posts
Showing posts with label capital. Show all posts

Tuesday, November 28, 2017

Jacob G. Hornberger: A basic principle about capital

  Imagine a farm in an impoverished country, a farm where the workers are using hoes to do their work in the fields. The farm produces 1000 bushels of wheat a year, which is sold for $10,000. The farmer’s income statement reads as follows: