Abstract

This paper is design to show the reader the connection of economic concepts. Economic concepts are not just one idea that stands alone but a connection that help each other and befits the economic. We will be focusing on the chain connection of the term value and it uses in production on how it is compared with division of labor. This will be connected to the next chain that shows the evolution in the economy.

The construction of economics has many concepts to it. Started form per-classical economist until today. Some of the ideas were left behind and some evolved and are used today. The ideas of the past until now show how we use and measure or own success and how can figure out our future to better help our country. I believe that many economic ideas are connected like a chain form value to production and division of labor.  Other a connected to when it comes to trade and competing with other countries. It is taking a look in a wider scale to everything.

Value

Value is one of the concepts of classical economics that still hold value to our core concepts of economics today. In order to understand values you must understand price and profit. Profit is the amount a company or producer is determined to get after all the cost of the item or service.  The price is the cost for the consumer to spend on what the producer seems fit.  This exchange is a battle on the value of an item. This notions of value between consumer and producer is why value is a key component of classical and modern economics.

Based on the writing of Sim Taylor in the book of Human Society and Global Economy, give the use of value and what it should be used for. For Example “Value should bear a relationship to relative price “.  Relative price is the ratio of supply and demand but mainly the ratio of money spent on the goods. I would like to note that value has been discussed throughout history by many economist transcending throughout time, form classical economics to the Marginalist who started the term relative price and was also called Neo-classic economist.

Before diving into the depth of the classical economist theories of va