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In economics, economic value is a measure of the benefit provided by a good or service to an economic agent, and value for money represents an assessment of whether financial or other resources are being used effectively in order to secure such benefit. Economic value is generally measured through units of currency, and the interpretation is therefore "what is the maximum amount of money a person is willing and able to pay for a good or service?” Value for money is often expressed in comparative terms, such as "better", or "best value for money", but may also be expressed in absolute terms, such as where a deal does, or does not, offer value for money.
In economics, marginal utility describes the change in utility of one unit of a good or service. Marginal utility can be positive, negative, or zero.
Criticisms of the labor theory of value affect the historical concept of labor theory of value (LTV) which spans classical economics, liberal economics, Marxian economics, neo-Marxian economics, and anarchist economics. As an economic theory of value, LTV is widely attributed to Marx and Marxian economics despite Marx himself pointing out the contradictions of the theory, because Marx drew ideas from LTV and related them to the concepts of labour exploitation and surplus value; the theory itself was developed by Adam Smith and David Ricardo. LTV criticisms therefore often appear in the context of economic criticism, not only for the microeconomic theory of Marx but also for Marxism, according to which the working class is exploited under capitalism, while little to no focus is placed on those responsible for developing the theory.
References
- ↑ Clark, J. B. Raspredelenie bogatstva. Moscow-Leningrad, 1934. Chapter 21. (Translated from English.)
- ↑ Samuelson, P. Ekonomika. Moscow, 1964. Chapter 26. (Translated from English.)
- ↑ Kritika burzhuaznykh ekonomicheskikh teorii. Edited by M. N. Ryndina. Moscow, 1960. Pages 89–98.
- ↑ Nikitin, S. M. Teorii stoimosti i ikh evoliutsiia. [Moscow, 1970]. Chapter 6.
- ↑ Marx, K. Kapital, vol. 1. In K. Marx and F. Engels, Soch., 2nd ed., vol. 23, chs. 4–5
- ↑ "Economics & Sociology Department | Grove City College" (PDF).
- ↑ Uzawa, Hirofumi (1958). "A note on the Menger–Wieser theory of imputation". Zeitschrift für Nationalökonomie. 18 (3): 318–334. doi:10.1007/BF01317023. S2CID 154846224.
- ↑ "Chapter 7: Theories of Value".