Value and Price Essay Example

Value and Price Essay There  are  four  major  attributes  of  a  commodity  i. e. ,  an  item  or  service  produced  for,  and  sold  on  the  market  has   four  major  attributes. They  are:   †¢ a  value   †¢ a  use? value  (or  utility)   †¢ an  exchange  value   †¢ a  price  (it  could  be  an  actual  selling  price  or  an  imputed  ideal  price) VALUE In   simple   words,   value   refers   to   the   importance   of   a   thing   or   utility   of   a   commodity. But   in   economics   the   term   â€Å"value†Ã‚  has  a  quite  different  meaning. According  to  the  famous  economist,  Adam  Smith,  the  word  Ã¢â‚¬Å"Value†Ã‚  can  be   used  in  two  meanings:  Ã‚   i. Value  in  Use  and   ii. Value  in  Exchange. 1) Value  in  use:  Value  in  use  is  also  called  Utility  or  a  want  satisfying  power  of  a  commodity. For  example,   water  satisfies  our  thirst. The  quality  of  water  is  the  value? in? use  of  water. Since  water  is  not  scarce,  it  is   free  good,  hence  not  studied  in  economics. 2) Value  in  Exchange:  Value  in  Exchange  means  purchasing  power  of  goods. It  is  the  power  of  a  good  to   secure  other  goods  in  exchange. It  is  the  value  of  a  commodity  in  exchange  of  the  other  commodity. For   example,  if  3  kgs. f  wheat  can  be  obtained  in  exchange  of  1  kg. of  rice,  the  exchange  value  of  1  kg  of   rice  is  equal  to  3  kgs. of  wheat  or  the   value  of  3  kgs. of  wheat  is  equal  to  1  kg. of  rice. OBSERVATION:   In   economics,   the   term   â€Å"value†Ã‚   is   used   for   the   value   of   exchange. It   is   the   amount   of   goods   and   services  that  can  be  secured  in  exchange  for  a  particular  commodity. In   the   words   of   Prof. Tausslg. â€Å"The   value   of   a   commodity   means   in   Economics,   its   power   of   securing   other   commodities  in  exchange. We will write a custom essay sample on Value and Price specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Value and Price specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Value and Price specifically for you FOR ONLY $16.38 $13.9/page Hire Writer In  the  words  of  Anatol  Murad,  Ã¢â‚¬Å"The  value  of  a  goods  is  its  purchasing  power. †Ã‚   The  number  of  units  of  something  obtained  in  return  for  1  unit  of  a  commodity  can  be  the  value  of  that  commodity. If  2  kgs. of  potatoes  can  be  obtained  in  return  for  1  kg. of  wheat,  the  value  of  1  kg. of  wheat  will  be  equal  to  2  kgs. of   potatoes. If  a  commodity  does  not  have  any  power  to  secure  other  commodities  in  exchange,  it  has  no  value. Prof. Belly   is   right   to   observe   that   a   commodity   does   not   have   any   value   by   itself. Its   value   is   represented   only   through  some  other  commodity. Attributes  of  Value   To  a  layman,  value  may  have  the  same  meaning  as  utility  but  in  economics  the  two  are  quite  different. In  economics,   a  commodity  has  a  value  when  the  following  attributes  are  found  in  it:   1) Utility:  A  commodity  has  value  only  when  it  has  a  utility  or  power  to  satisfy  our  wants. If  a  commodity  has   no  utility,  no  other  commodity  or  service  will  be  secured  in  exchange  for  it. 2) Scarcity:   A   commodity   has   a   value   only   when   it   has   an   attribute   of   scarcity   along   with   utility   (i. e. ,   scarce   besides   being   useful). A   commodity   is   scarce   when   its   demand   exceeds   its   supply. Air,   water,   sunlight   do   have  their  utility,  but  these  are  not  scarce. Their  supply  exceeds  their  demand. Therefore,  the  do  not  have   any  value. 3) Transferability:   A   commodity   has   a   value   only   when   by   transferring   it,   some   other   commodity   can   be   secured  in  exchange. Transferability  refers  to  changing  the  ownership  of  a  commodity,  or  securing  another   commodity  in  exchange  for  it. Thus,  by  virtue  of  transferability,  the  good  which  was  once  yours  may  now  be   owned  by  another  man. Thus,  for  a  good  to  have  value,  besides  possessing  utility,  it  should  also  be  scarce  and  transferable. Unless  all  these   three  attributes  are  present  in  a  good,  it  cannot  have  value. For  example,  air  has  utility  but  since  it  is  not  scarce  or   transferable,  it  has  no  value. Since  rotten  eggs  are  scarce  and  transferable  but  posses  no  utility,  they  also  don’t  have   value. A  car,  since  it  possesses  utility  and  is  scarce  as  well  as  transferable,  has  value. PRICE In  the  modern  age,  we  do  not  secure  goods  in  exchange  for  other  goods. We  do  n

Argumentative Essay Topics For Election Season

Argumentative Essay Topics For Election SeasonEach and every year I attend the Festschrift Education forum in Germany, it is almost impossible to find a student who has not already heard their most recent topic. But for the lucky few, I have to disappoint them by only presenting some of the current topics for argumentative essay topics.This year I had a lot of options of topic for my essay, and I really could have chosen to not spend any time thinking about what topic to write next. It was a nice change to explore the possibilities for new topics for argumentative essay topics, but after the discussion with my class I realized that for me there were only two options available: discussing issues surrounding current events, or discussing some perennial philosophical issues. For my country's upcoming elections I went with the former topic, as I believed it would be easier to get a broader range of students interested in it than the latter one.As far as political analysis goes, I really found some problems in the current information provided to us about the upcoming elections. On one hand, many politicians had denied that their party was going to change the way the government works, even though polls showed that voters are very concerned with this subject. And on the other hand, there were many politicians that spoke about the upcoming elections as a guarantee for the success of the country.This lack of information seemed to make the students extremely excited about the topic of election and debated some interesting topics and finally came up with their own ideas. One of the students thought that there should be some sort of power grid regulation for our electricity companies, another said that he thought that it would be good to have a centralized database of people who are doing business in the country, and so on. After some discussions I decided to choose the topic of political analysis by discussing the ideas presented.My objective during the discussion was to reach out to the students that I had known that could think deeply about the topic of political analysis. Some of them seemed more worried about the safety of the country's electricity and did not really feel like discussing it, but others were very interested in the subject and considered the topic interesting.After the discussion I read a student an example of a direct action campaign or a campaign against nuclear plants, and they almost fell off their seats from surprise. The fact that such subjects, such as these, are discussed at all during political classes seems to give all students a great feeling about their country and our future.In order to reach all of the students, I decided to reach out to the ones who wanted to discuss election issues, and spent the whole period reading out loud from a book of questions and topics for argumentative essay topics. I think this worked because it had a greater impact on them and they were able to communicate with the class in a different way than they have in the past.Discussing election issues and finding solutions for them will always be a part of the argumentative essay topics for next year. And I am sure that there will be many debates and discussions.