ABSTRACT
Any economic society, therefore, if it is to be progressive, will require two main functions, which the composite term Entrepreneur Function seems to describe most appropriately. In any economic society the use of money as a measuring-rod through the operation of a price system in some form will be required for this purpose, unless that society is willing to sacrifice entrepreneur adjustment altogether. It is habitual to balance in one’s mind the utilities of various goods and the costs of various exertions and sacrifices. To find out what price goods will “fetch” is usually an approximate means of measuring the desire for a thing, in cases where money incomes are equal, and it seems in practice to be the only satisfactory way of doing so. To be completely successful, an economic society must fulfil both conditions of adjustment and innovation. A society might conceivably perform the first admirably, but be stagnant and unprogressive through failure in the second respect.
