Imagine that while cleaning out your great-grandfather's attic, you find a rucksack containing a journal and a sheaf of papers. Your great-grandfather, a noted entrepreneur and businessman, was also an accomplished amateur explorer. The joumal, which appears to be written in your great-grandfather's hand, is a d ary describing a series of visits to a small uncharted is and cal led Rodos, in the northern Atdlantic during the late 1800s. The joumal and papers contain notes made during his conversations with Valdimar, king of Rodos, when they discussed the kingdom's business and economic conditions. Notes-February 1,1878 Background on the Kingdom and Economy of Rodos . Rodos is a small agrarian island kingdom. Most Rodosian otizens live in small towns or in rural areas. King Val dimar and his royal court, on the other hand, live in the country's single, geographically centralized city King Valdimar, an enlightened ruler, wants to create an economy that improves Rodosians' standard of living and quality of life. He is also concerned with being as fair as he can to each citizen. * The king has vast property holdings, but he does allow his citizens to own real and personal property, which can be used to generate the income to improve their standard of living and to pay their taxes * Tax revenues are used to provide for the island's defense and general services, such as a postal system and the construction and maintenance of roads, bridges, and similar structures. Financial markets are rudimentary but effective. Citizens and businesses with more income than they require may deposit their funds into banks, who in turn may lend these funds to qualified borrowers. Rodos's equity markets are more So, though equity markets exist, there aren't many companies nor large numbers of shares bought and sold. nstrained; owners are not allowed to sell more than 49% ownership of their company *