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value in use vs value in exchange
* [[Randian theory of value]]: Value derives from the objective realities of an individual's situation, and reasonable goals on the part of the individual;
* [[Randian theory of value]]: Value derives from the objective realities of an individual's situation, and reasonable goals on the part of the individual;
* [[Subjective theories of value]]: value is created and determined by subjective demand and scarcity
* [[Subjective theories of value]]: value is created and determined by subjective demand and scarcity
[[Adam Smith]] states there are two types of value, ''value in use'', and ''value in exchange'', and gives as an example,
{{Cquote|Nothing is more useful than water: but it will purchase scarce any thing; scarce any thing can be had in exchange for it. A diamond, on the contrary, has scarce any value in use; but a very great quantity of other goods may frequently be had in exchange for it. <ref>Adam Smith, An Inquiry into the Nature and Causes of the Wealth of Nations, [http://www.econlib.org/library/Smith/smWN1.html#B.I, ''Of the Origin and Use of Money,''] Book I, Chapter 4, Paragraph 13, First Edition 1776.</ref>}}
==References==
<references/>
<ref>[
[[Category:Economics]]
[[Category:Economics]]