Write short notes on value exchange system.
Answers
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 (note the link is to a non-Marxian definition of value);
a use value (or utility);
an exchange value;
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.