Personal reflective blog Essay Example

4EVALUATION OF ECONOMIC IDEAS

Evaluation of economic ideas

Evaluation of economic ideas

This topic covers a number of theories in economy, based on key figures ideas on economy.my point of discussion is on the key points I got from the whole topic, a number of ideas where discussed like the cost of production, measure of value, and labor.

Economic value is a quantity of the profit delivered by a good or service. According to my understanding, value of a good is equal to the reputation of the least important satisfaction given by the total quantity and produced by any equal portion. According to Smith’s theory of measuring value, the quantity of labor, which enables him to purchase or command, is the real measure of exchangeable value of all. Smith also considers what standard should be used to measure the value of commodities and the changes in them. According to Marx labor theory, relevant quantity of abstract labor time is socially necessary labor Time where commodities exchange at their value ratio (Cohen, 1979).

Cost of production theory determines that the price of an object is seen by the amount of the cost of the resources that designed it.The cost can include any of the factors of production and taxation. Marx theory of production states that natural price of a commodity is that which just covers wages, profits and rent at their average rates (Cohen, 1979).

The key important points that I got from this context is that actually the labor theory of value does state that, the economic value of a good or service equals total amount of necessary labor required to produce it (according to Marx theory of labor). Some views were also opposing, like Malthus view of supply and demand explanation of price, Bailey’s facts, which value denotes nothing positive or intrinsic: merely a relation between two objects, and Lloyd’s facts that value signifies a “feeling of a mind, which appears on top the page of ” separation between satisfied and unsatisfied wants.”

History of economics comes from key figures researches, such as Smith, Marx, Bailey, Malthus and Lloyd, these figures demonstrate economic theories and explain them in their own understanding, each deferring from the other’s views, this shows that economy is wide and a lot of research is done. Economy has laws, and demands and these theories explain them better. Some of these theories are similar to each other though. The important points I have mentioned are key points of economy and they are explained better by some of the figures of economy like Marx and Smith. I also gathered that economy as a wild subject rotates around laws, and theories. These theories and laws give a better understanding of the topics of economics.

Therefore, these theories relate in one way or another and all explain each other accordingly, giving us a clear picture of what economics is all about, production theory relates in one way with theory of labor of value.

Reference

Cohen, G.A. (1979). The labor theory of value and the concept of exploitation.Philosophy & Public Affairs. The Concept of Exploitation, 8(4) pp.338-360.