Value in use and value in exchange are the same agree or disagree with this sentence
Answers
Answer:
disagree with this answer
Answer: The answer is as follows:
Explanation:
I am disagree with this statement that value in use and value in exchange are the same thing.
In general, value is just the utility that a consumer obtained from the consumption of a commodity.
But according to the Adam smith (father of economics), value is defined in two terms:
(1) Value-in-use :- There is some value derived from the consumption of a commodity and commodity have some satisfying power. The satisfaction that a consumer get from the use of a commodity is called the value-in-use. For instance, there is a immense consumption of water and water has a immense value use. Without water daily life become impossible.
(2) value-in-exchange :- When we are exchanging some quantity of good and services with other commodities, then the amount of commodity and services that we obtain from exchange is called as value-in-exchange.
For instance, suppose we are exchanging 1 kg of wheat with 1 kg of rice, then we say that the value of 1 kg of wheat is equal to the value of 1 kg of rice.