Theory of value (economics)
- Theory of value (economics)
"Theory of value" is a generic term which encompasses all the theories within economics that attempt to explain the exchange value or price of goods and services. Key question in economic theory include why goods and services are priced as they are, how the value of goods and services comes about, and for normative value theories how to calculate the "correct" price of goods and services (if such a value exists). Theories of value fall into two main categories:
Intrinsic (objective) theories::"see main article: Intrinsic theory of value:Intrinsic theories, as the name implies, hold that the price of goods and services is not a function of subjective judgements. An example is the labor theory of value which says that prices in a market economy are a function of how much labor was put into the production of a product.
Subjective theories::"see main article: Subjective theory of value:Subjective theories hold that for an object to have economic value (a price), the object must be useful in satisfying human wants and it must be in limited supply. This is the foundation of the marginalist theory of value, of neoclassical economics. The marginal utility theory is not a normative theory of value, but simply an explanation of why things are priced as they are in a market economy.
See also
* Paradox of value
* Marginalism
* Cost-of-production theory of value
* Labor theory of value
Wikimedia Foundation.
2010.
Look at other dictionaries:
Value (economics) — Economics … Wikipedia
Theory of value — is an ambiguous term, and may mean:*Theory of value (economics), where value is meant as economic worth of goods and services. *Value theory, where value is meant in the philosophical sense … Wikipedia
Labor theory of value — The labor theories of value (LTV) are theories in economics according to which the values of commodities are related to the labor needed to produce them.There are many different accounts of labor value, with the common element that the value of… … Wikipedia
Criticisms of the labour theory of value — often arise from an economic criticism of Marxism. Contents 1 Microeconomic theory 2 Supply and demand 3 Jevons 4 Menger s critique … Wikipedia
Cost-of-production theory of value — In economics, the cost of production theory of value is the theory that the price of an object or condition is determined by the sum of the cost of the resources that went into making it. The cost can compose any of the factors of production… … Wikipedia
Value theory — encompasses a range of approaches to understanding how, why and to what degree people should value things; whether the thing is a person, idea, object, or anything else. This investigation began in ancient philosophy, where it is called axiology… … Wikipedia
Subjective theory of value — The subjective theory of value (or theory of subjective value ) is an economic theory of value that holds that to possess value an object must be both useful and scarce, [Moser, John. The Origins of the Austrian School of Economics, Humane… … Wikipedia
Intrinsic theory of value — This article is about the philosophy of economic value. For valuation of financial assets, see Intrinsic value (finance). An intrinsic theory of value (also called theory of objective value) is any theory of value in economics which holds that… … Wikipedia
labour theory of value — The idea that labour is the ultimate source of all wealth a commonplace among the early political economists . Adam Smith , for example, argued that, in a market society in which workers owned their own means of production, the prices of goods… … Dictionary of sociology
Cost of Production Theory of Value — ˌCost of Proˌduction ˌTheory of ˈValue noun [singular] ECONOMICS a 19th century economic idea, saying that the value or price of something depends only upon the cost of making or growing it. This idea is now seen as too simple, especially because … Financial and business terms
