ABSTRACT
This chapter considers the productive system in the case in which there was only one product which constituted both the consumption good and also the man-made instrument of production, the capital good. It takes one further substantial step towards reality by allowing for the fact that there are many different products in the economy. A basic reason for this is that many natural resources are not in fact indestructible or unalterable in quality. The natural resource, like the man-made instrument of production, may go into the firm or farm in the morning in one quantity or quality and come out of the firm or farm in the evening in a different amount or quality. The chapter explains the modifications which make an assumption about the monetary and financial institutions in order to make them relevant to the problems of a many-product economy.
