Question

44. Capitalism is a regime in which exchange value predominates over use value, and the problem in this is
that once exchange value dominates capital, capital must perpetually
(A) shrink.
(B) develop
(C) progress.
(D) expand
​

Answer 1

In political economy and especially Marxian economics, exchange value (German: Tauschwert) refers to one of four major attributes of a commodity, i.e., an item or service produced for, and sold on the market. The other three aspects are use value, economic value, and price.[1] Thus, a commodity has:

a value, represented by the Socially necessary labour time to produce it. (note the first link is to a non-Marxian definition of value);

a use value (or utility);

an exchange value, which is the proportion at which a commodity can be exchanged for other commodities;

a price (it could be an actual selling price or an imputed ideal price).

These four concepts have a very long history in human thought, from Aristotle to David Ricardo,[2] becoming ever more clearly distinguished as the development of commercial trade progressed but have largely disappeared as four distinct concepts in modern economics. This entry focuses on Marx's summation of the results of economic thought about exchange-value.