Honors Econ 215 Spring 2017 Assignment 1 Due Wednesday 28th

Honors Econ 215 Spring 2017 assignment 1 Due Wednesday 28theory O

Write a 2-3 page minimum reflection on the different concepts of “value” discussed in the course, including ideas from the book "The Worldly Philosophers," Adam Smith, David Ricardo, and Raj Patel’s reading (pages 61-69). Address which ideas particularly appealed to or troubled you, and synthesize these into your own workable definition of “value.” Explain in your own words what gives something “value,” supported by evidence from the course materials. Additionally, survey 4 or 5 friends or family members to gather their definitions of “value,” and compare their perspectives with those from the course. Report on how their responses are similar or different and whether they provide spontaneous answers or influenced ones.

Paper For Above instruction

Understanding the concept of “value” has been a central theme in the economic theories examined throughout this course, particularly through the works of classical economists such as Adam Smith and David Ricardo, as well as contemporary perspectives like those of Raj Patel. These diverse viewpoints offer a spectrum of ideas about what constitutes value, how it is created, and what it signifies in economic contexts. Reflecting upon these theories allows for a deeper grasp of the nuanced and often subjective nature of value, as well as its societal implications.

Adam Smith’s theory of absolute advantage emphasizes the importance of productivity differentials between nations. According to Smith, a country has an absolute advantage in producing a good if it can do so more efficiently than its trading partners. For instance, if Country A can produce wheat using fewer resources than Country B, then Country A has an absolute advantage in wheat production. This concept suggests that nations should specialize in producing goods where they hold an efficiency lead, thus maximizing overall wealth through international trade. Smith’s idea frames value around productivity and resource efficiency, emphasizing the tangible output as the primary measure of a good’s worth.

David Ricardo’s theory of comparative advantage extends this idea of efficiency but introduces a more nuanced view. Rather than focusing solely on absolute productivity, Ricardo argued that countries gain from trade by specializing in the production of goods where they have a relative advantage. This means that even if one country is less efficient in producing all goods, it should specialize in those where it is comparatively less disadvantaged. For example, if Country A is better at producing both cloth and wine compared to Country B, but still relatively better at cloth, then it should specialize in cloth, and Country B in wine. This specialization, rooted in comparative advantage, underscores that value derives from relative efficiencies, not just absolute productivity.

From these classical perspectives, a common thread emerges: value is intricately linked to productivity, efficiency, and resource allocation. However, Raj Patel’s reading introduces a broader, more social and ethical dimension to the concept of value. Patel highlights that value is not solely determined by market exchange but also depends on social relationships, health, environmental sustainability, and equity. For instance, he discusses water and diamonds, illustrating how social, environmental, and moral considerations influence what we assign value to beyond mere exchange value — for example, the ethical implications of resource extraction or the environmental costs embedded in market prices.

Synthesizing these ideas, I would define “value” as a measure of worth that balances efficiency, social impact, and ethical considerations. It is not only the physical or economic utility derived from a good or service but also the social and environmental significance attached to it. Something’s value depends on its ability to fulfill human needs and desires efficiently, while also aligning with societal values such as sustainability, fairness, and well-being. In this sense, value is a multidimensional construct that encompasses productivity, social consciousness, and ecological impact.

To explore how others define “value,” I surveyed four friends and a family member without suggesting any particular economic framework. Their spontaneous responses reveal diverse perspectives. One friend defined value as “what something is worth in terms of money or how much someone is willing to pay for it,” emphasizing market valuation. Another saw value as “the importance or usefulness of something to a person,” highlighting personal or subjective significance. A third person expressed that “value depends on how much need or desire something fulfills,” linking value to utility and demand. The fourth friend mentioned environmental and social factors, stating that “value is also about how much a product impacts society or the environment,” aligning somewhat with Patel’s broader view. My family member described value as “what makes something valuable is whether it’s rare or resource-intensive to produce,” which echoes classical theories of productivity and scarcity.

Compared to the course concepts, their responses vary in emphasis. Some focus on monetary worth and utility, similar to Smith and Ricardo’s emphasis on productivity and efficiency. Others incorporate subjective or moral dimensions, resonating with Patel’s critique of purely market-based measures. This survey underscores that the concept of value is multifaceted and context-dependent, shaped by individual perceptions, social norms, and ethical considerations.

In conclusion, the concept of value in economics evolves from classical ideas rooted in productivity and resource allocation to more contemporary notions that include social justice, environmental sustainability, and moral considerations. Recognizing this diversity enriches our understanding of economic behavior and the factors that influence how societies assign worth to goods, services, and resources. Appreciating the complexity behind “value” allows policymakers, businesses, and individuals to make more ethically informed and socially responsible decisions, fostering a more holistic approach to economic activity.

References

• Adam Smith. (1776). An Inquiry into the Nature and Causes of the Wealth of Nations.
• David Ricardo. (1817). On the Principles of Political Economy and Taxation.
• Patel, R. (2012). Water and Diamonds. In The Value of Nothing. University of California Press.
• Smith, A. (1776). The Wealth of Nations.
• Ricardo, D. (1817). On the Principles of Political Economy and Taxation.
• Holt, R. (2009). The Political Economy of Imperialism: The Case of Adam Smith.
• Sen, A. (1999). Development as Freedom. Oxford University Press.
• Sen, A. (2009). The Idea of Justice. Harvard University Press.
• Harvey, D. (2010). The Enigma of Capital and the Crises of Capitalism. Oxford University Press.
• Raworth, K. (2017). Doughnut Economics: Seven Ways to Think Like a 21st-Century Economist. Chelsea Green Publishing.