Summary Of "The Economic System" By Armando Fastman - UNIVERSITY SUMMARIES - E-book - ePub

We have summarized the essential of this book by the author. THE ECONOMIC SYSTEM1. Economic activity. MeasurementThe problem of value is to determine a measure of the exchanges. TYPES OF VALUE. USE VALUE: is the ability of a merchandise to satisfy a need. EXCHANGE VALUE: ability of a commodity to be exchanged for others, because it has a use value, is the product of human labor and is produced for the marketHuman labor determines the magnitude of the product's value.
This product is expressed in a monetary sign and is the PRICE. Goods have different prices but in the long run the differences between value and price tend to disappear.