Capital.
37
accumulation ? Owens Col. Cobden Prise, 1878-79. ii. 8.
210.	What are the chief circumstances affecting the accumulation of capital ?
It is frequently argued that if wages increase at the expense of profits, capital must be diminished, and so wages ultimately reduced. What inadmissible assumptions are involved in this reasoning ? Examine the effect of such an increase of the rate of wages on savings. Lond. Univ. Cat., 1880. i. 8.
[Marshall, Economics of Industry, p. 203, § 4.]
211.	Define capital, and examine the meaning of the term in the following statements :—
(a)	Demand for commodities cannot create capital.
(b)	Credit is not a creation, but a transfer of capital.
(c)	Wages depend upon the proportion between population and capital. Univ. Col. Class., 1876-77. iii. 8.
212.	(i) Distinguish between the hoarding of wealth and the saving of capital.
(ii)	Enumerate as clearly as you can the (a) fixed and (b) circulating capital which is needed on a small farm.
(iii)	Show under what conditions the introduction of machinery is (a) beneficial, (b) hurtful, to the labourers. Camb. Mor. Sci. Tripos, 1879. iii. 10.
213.	What are the chief functions of capital ?
Comment on the distinctions that have been drawn
between fixed and circulating capital. Remark on the proposition, ' demand for commodities is not