Ratings by sethherr

Marginalism

Adam Smith struggled with what came to be called the paradox of “value in use” versus “value in exchange.” Water is necessary to existence and of enormous value in use; diamonds are frivolous and clearly not essential. But the price of diamonds—their value in exchange—is far higher than that of water. What perplexed Smith is ...

2018-02-04T17:46:32-0800 Econlib 2,000 words

Rated 2023-09-12T19:26:51-0700