Reference no: EM131051949

It is certain, then, that numerous cases can be observed in the economic life of men in which economic goods have use value and exchange value simultaneously to the economizing individuals possessing them, and that the two forms of value are often of dif­ferent magnitudes. The question that arises is which of these two magnitudes is, in any given case, the one that determines the eco­nomic calculations and actions of men-or, in other words, which of the two forms of value is the economic form of value in the given instance.

The solution to this question arises from reflection upon the nature of human economy and upon the nature of value. The leading idea in all the economic activity of men is the fullest possible satisfaction of their needs. If more important satisfac­tions of an economizing individual are assured by the direct use of a good than by its indirect use, it follows that more important needs of the individual would remain unsatisfied if he were to employ the good in an indirect fashion for the satisfaction of his needs than if he were to em lo it directl . There can be no