QUESTION
State with reasons whether you agree or disagree with the following statement:
Value-in-use and Value-in-exchange are the same
Options
Agree
Disagree
SOLUTION
No, I do not agree with this statement.
Reasons:
(1) Value-In-use refers to the utility of the commodity in day to day life. Whereas value-inexchange refers to the worth of commodity expressed in terms of price.
(2) Commodities like water, air are highly essential for human life. Thus, these commodities have high value-in-use. But as these commodities are available on a large scale. 80 they have low value-in exchange.
(3) Commodities like gold, diamonds are not very essential for human life. Thus, these commodities have less value-in-use. But as these commodities are available on a small scale or scarce they have high value-in-exchange. Therefore, Value-in-use and value-in-exchange are two different concepts.
