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Exchange value of goodsand services

Economics

SMA NEGERI 1 SEMARANG

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Edited by :

Azaria Rahma Shabrina (07)

Shalihat Afifah (29)

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Theexchange value is theability ofan item inexchange for othergoods. Theexchange values divided

into:

a. Objectiveexchange value

b. Subjectiveexchange value

objectiveexchange value,exchange value ofgoods

that is based on themerchandise.

Subjectiveexchange value,exchange value ofgoods

that is based on theexchange.

Exchange value

Example: People withapaintinghobby willhavea

different assessment ofpeople who do not likepainting.

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Objective Exchange Value Theory

objectiveexchange value is theability ofan item(objectively) inexchange for othergoods and not influenced

psychologicalelements,allpeoplecanaccept it. examples of

goods that have the objectiveexchange value ofmoney and

gold.

example: theprice of one kilogram of rice Rp 3,500,00.

That is, theability ofmoney amounting to Rp 3.500,00 canbe

exchanged for one kilogram of rice.

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Theexchange valueaccording to some views of objective

theory of value is expressed as follows:

a. Cost ValueTheory (Adam Smith)

This theory emphasizes the value ofan object is determined

by theamount ofallcosts incurred to producegoods /

services.

b. Production Cost ValueTheory of Labor (David Ricardo)

These theories emphasize that the value ofagood is

determined by theamount of wages labor to producegoods.

c. LaborTheory of Value Society (Karl Marx)According to this theory the value ofan item is determined by

the size of theaveragecost oflabor society.

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d. Reproduction Cost ValueTheory (Carey)

According to this theory the value ofan itembased on thecost

incurred when thegoods areproduced again.

e. Market ValueTheory (Hummeand Lock)

Based on this theory the size of the value ofan item is stronglyinfluenced by the formation ofmarket prices.

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Value

Use value

Exchange

value

Objective

Exchange

Value

SubjectiveExchange

Value

Objective Use

Value

Subjective

Use Value

Cost Value Theory

Production Cost Value

Theory of Labor

Labor Theory of ValueSocietyReproduction Cost

Value TheoryMarket Value Theory

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Subjective Exchange Value Theory

subjectiveexchange value is givena sense ofagood

or service regarding these items canbeexchanged with

other objects that can satisfy theirneeds.

ahighly valued object by someone that he wantedto buy at highprices, while others may not beable to

appreciate that high.

examples ofgoods that havea subjective

exchange valueamong otherantiquecars, oldmotorcycles, furniture,jars, weapons,and paintings.

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Thelevel ofagood exchange rate is influenced three things:

1) Purposethehigher the items usefulness inmeeting thehumanneeds

of thehigherexchange value ofgoods

2) theamount ofgoods availablethe size ofan item that is available will determine the size ofa

good exchange value. more widely available theless the

object exchange values, instead theless amount ofgoods

available thehigher the object exchange

3) theamount ofmoney incirculation

moreand moreamount ofmoney incirculation smaller

exchange value,and conversely theless amount ofmoney in

circulation thegreater theexchange value.

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Thanks for your attention, friend