ABSTRACT
On an abstract level, i t is instructive to view the economic system as one in which stocks of productive resources (capital) produce flows of productive services that are transformed into flows of final consumer services. The con tinuing flow problem is the allocation of the productive services to various uses, their combination in the process of transformation into consumer services, and the distribution of the consumer services among the ultimate consumers in the economy-problems 1, 2, 3, and 5 in Frank Knight's five fold subdivision of the economic problem introduced in chapter 1. These are the problems that have been dealt wi th in-the preceding chapters, which can be regarded as concerned primarily wi th the relative prices of different service flows.
