Value-in-use and Value-in-exchange.

Question

Distinguish between:

Value-in-use and Value-in-exchange.

Answer 1

Value-in-use	Value-in-exchange
(i) It refers to the usefulness of a commodity.	(i) It refers to the value of a commodity or a service expressed in terms of another commodity.
(ii) Value-in-use depends upon utility.	(ii) Value-in-exchange depends upon scarcity.
(iii) Free goods like water, air, sunshine, etc. have greater value in use but less value in exchange.	(iii) Economic goods like a diamond, gold, etc. have greater value-in-exchange but less value-in-use.