Question

Do you agree with the following statement?

Value in use and value-in- exchange are the same

Answer 1

Explanation:

I disagree with this statement that values in use and values in exchange at same

• in general the values is just the utility that a consumer obtained from the consumption of a commodity
• but according to Adam Smith ( father of Economics )value is defined in two terms :

value in use

• There some value derived from the consumption of a community and community have some satisfying powers
• the satisfaction that a consumer get from the use of community is called value in use
• for instance there is an immense conception of water and water has immense value use
• without water daily life becomes impossible

value in exchange

• when we are exchanging some quantity of goods and services with other commodities then the amount of commodities and the services that we obtain from exchange is called has value in exchange
• for instance, suppose we are exchanging 1 kg of wheat with 1 kg of rice then we say that value of 1 kg of wheat is equal to value of 1 kg of rice
• hope it helps