Source and Measure of Value For an economic system to operate, market participants must have a consistent and reliable measure of value. They must know the value in order to allocate resources effectively and efficiently. The need for a consistent measure of value holds true regardless of what economic theory you advocate. Although I don’t … Continue reading Conflicting Value Theories
The most important fundamental activity, after production and consumption, consists of exchange. The process of exchange allows producers to extend the range of their consumption beyond the limits of their own production. Exchange, therefore, benefits all actors engaged in exchanges. When left free and voluntary, the exchange process benefits everyone in what we broadly refer to as markets.