Paradox of value - Revision history

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			[[Category:Economic concepts]]

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	The '''paradox of value''' is the peculiar difference between the value of something in exchange and its value in use. For instance, gold has a higher value in exchange than iron, but iron is much more useful. Adam Smith writes:		The '''paradox of value''' is the peculiar difference between the [[value]] of something in exchange and its value in use. For instance, [[gold]] has a higher value in exchange than [[iron]], but iron is much more useful. Adam Smith writes:

	<blockquote>"What are the rules which men naturally observe in exchanging them [goods] for money or for one another, I shall now proceed to examine. These rules determine what may be called the relative or exchangeable value of goods. The word VALUE, it is to be observed, has two different meanings, and sometimes expresses the utility of some particular object, and sometimes the power of purchasing other goods which the possession of that object conveys. The one may be called "value in use;" the other, "value in exchange." The things which have the greatest value in use have frequently little or no value in exchange; on the contrary, those which have the greatest value in exchange have frequently little or no value in use. Nothing is more useful than water: but it will purchase scarce anything; scarce anything can be had in exchange for it. A diamond, on the contrary, has scarce any use-value; but a very great quantity of other goods may frequently be had in exchange for it."</blockquote>		<blockquote>"What are the rules which men naturally observe in exchanging them [goods] for money or for one another, I shall now proceed to examine. These rules determine what may be called the relative or exchangeable value of goods. The word VALUE, it is to be observed, has two different meanings, and sometimes expresses the utility of some particular object, and sometimes the power of purchasing other goods which the possession of that object conveys. The one may be called "value in use;" the other, "value in exchange." The things which have the greatest value in use have frequently little or no value in exchange; on the contrary, those which have the greatest value in exchange have frequently little or no value in use. Nothing is more useful than water: but it will purchase scarce anything; scarce anything can be had in exchange for it. A diamond, on the contrary, has scarce any use-value; but a very great quantity of other goods may frequently be had in exchange for it."</blockquote>

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Huckelberry: Created page with "The '''paradox of value''' is the peculiar difference between the value of something in exchange and its value in use. For instance, gold has a higher value in exchange than iron..."

2011-06-22T16:58:14Z

Created page with "The '''paradox of value''' is the peculiar difference between the value of something in exchange and its value in use. For instance, gold has a higher value in exchange than iron..."

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The '''paradox of value''' is the peculiar difference between the value of something in exchange and its value in use. For instance, gold has a higher value in exchange than iron, but iron is much more useful. Adam Smith writes:

<blockquote>"What are the rules which men naturally observe in exchanging them [goods] for money or for one another, I shall now proceed to examine. These rules determine what may be called the relative or exchangeable value of goods. The word VALUE, it is to be observed, has two different meanings, and sometimes expresses the utility of some particular object, and sometimes the power of purchasing other goods which the possession of that object conveys. The one may be called "value in use;" the other, "value in exchange." The things which have the greatest value in use have frequently little or no value in exchange; on the contrary, those which have the greatest value in exchange have frequently little or no value in use. Nothing is more useful than water: but it will purchase scarce anything; scarce anything can be had in exchange for it. A diamond, on the contrary, has scarce any use-value; but a very great quantity of other goods may frequently be had in exchange for it."</blockquote>

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