Encyclopedia > Value

  Article Content

Value

Economically speaking, the value of an object or service is the price it would bring in a fair, open market; the item's "buying power".

Intrinsic value is value which is inherent in an object: A one-ounce gold coin has intrinsic value because of the gold it contains. Even if its issuing authority (such as a government) were to fail to honor the coin's value, it would retain its intrinsic value.

Extrinsic value is value which arises because of an agreement: Although the intrinsic value of a €100 note is not much more than the value of any similar piece of paper with a pretty picture on it, it has a practical value (an extrinsic value) of €100. If its issuing authority were to fail to honor the note's value, it would soon become nearly worthless. This happened recently with the Argentinian peso.



All Wikipedia text is available under the terms of the GNU Free Documentation License

 
  Search Encyclopedia

Search over one million articles, find something about almost anything!
 
 
  
  Featured Article
242

... - 4th century Decades: 190s 200s 210s 220s 230s - 240s - 250s 260s 270s 280s 290s Years: 237 238 239 240 241 - 242 - 243 244 245 246 247 Events Patriarch ...

 
 
 
This page was created in 28.9 ms