Lesson 4: Value

Please read Part II, Chapters 9 - 10 and "Why are Theories of Value Important?"

1. Does material progress tend to increase or decrease the following: a) the total value of wealth in a community?           | Text |

b) the value of individual articles of wealth?

2. Can the value of a thing be determined by any intrinsic quality of the thing?           | Text |

3. Why does the cost of reproduction, not the cost of original production, determine a thing's value?           | Text |

4. a) What determines the price of an item that cannot be reproduced?           | Text |

b) What is the most common application of that principle?

5. Why is the monopoly value of land so much more important and fundamental than the monopoly value of unique artifacts?

6. What is the relationship of land value with social growth and progress?           | Text |

7. How does the use of money as a medium of exchange illustrate the true source and measure of value?           | Text |

8. Give examples of things whose value arises from obligation.           | Text |

9. Which of the following things has value from obligation?           | Text |

a. A famous athlete's product endorsement.
b. A real estate appraisal.
c. A liquor license.
d. A pound of cocaine.
e. None of the above.
10. What is the difference between value from production and value from obligation a) in individual economy?           | Text |

b) What is the difference between value from production and value from obligation in political economy?

11. Give a brief outline of the Austrian theory of value.           | Supplement |

12. Give a brief outline of the Marxist theory of value.           | Supplement |