Fundamental Concepts and Terminologies — Economics STD 11 Commerce — Question
Gujarat BoardEnglish MediumSTD 11 CommerceEconomicsFundamental Concepts and Terminologies3 Marks
Question
Give the meaning of price and value.
✓
Answer
We often use the words ‘price’ and ‘value’ in our daily life. Most of the times we use both these words alternatively but to represent the same meaning.
For example, we make statements like, ‘this jeans is expensive’, ‘this watch is valuable’, ‘this shoe has a high price’. When these statements are made they are made without differentiating between price and value. This is so because generally, a person believes price and value to be the same.
In economics, the concept of price and value are different and so it is necessary to understand the concept of value.
Value:
The worth of a commodity in terms of other commodities, or in terms of money i.e. price is called value of that commodity.
Value can be explained from two viewpoints. They are:
From viewpoint of use i.e. ‘use-value’
From viewpoint of exchange i. e. ‘exchange-value’.
Price:
If a commodity is exchanged for money then such monetary exchange-value is termed as ‘price’.
Price means the exchange-value $($or worth$)$ of a commodity measured in terms of units of currency.
We often use the words ‘price’ and ‘value’ in our daily life. Most of the times we use both these words alternatively but to represent the same meaning.
For example, we make statements like, ‘this jeans is expensive’, ‘this watch is valuable’, ‘this shoe has a high price’. When these statements are made they are made without differentiating between price and value. This is so because generally, a person believes price and value to be the same.
In economics, the concept of price and value are different and so it is necessary to understand the concept of value.
Value:
The worth of a commodity in terms of other commodities, or in terms of money i.e. price is called value of that commodity.
Value can be explained from two viewpoints. They are:
From viewpoint of use i.e. ‘use-value’
From viewpoint of exchange i. e. ‘exchange-value’.
Price:
If a commodity is exchanged for money then such monetary exchange-value is termed as ‘price’.
Price means the exchange-value $($or worth$)$ of a commodity measured in terms of units of currency.
Need a full question paper?
Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.