Lecture 5

Question 1

Value exists in three ways

Answer 1

1. Commodities (merchandise or service)
2. Money (express and measure commodities and social labor)
3. Capital (money to make money)

Question 2

Social labor

Answer 2

abstract labor needed to make a product (average amount of time)
Average amount of labor expended in making a commodity which determines the value of a commodity

Question 3

CMC cycle

Answer 3

Commodity Money Commodity

Produce something to sell to buy other commodities to survive (not accumulating capital)

Question 4

MCM cycle

Answer 4

Money Commodity Money

Capitalists use money to buy commodities to make more money (surplus value)

Question 5

Surplus value can take up 3 forms:

Answer 5

1. profit
2. interest
3. rent

Question 6

Profit

Answer 6

What remains after overhead is transformed into profit
2 categories:
1. Dividen; when use profits for personal use
2. Capital; reinvest in profit

Question 7

What is M2

Answer 7

Measure of capital accumulation
Once you subtract the interest, rent and dividens from surplus (M prime) we have a new m = M2
Accumulation of capital is M2 is bigger tan M prime

Question 8

Interest

Answer 8

If capitalists need to borrow money to make money

Question 9

Rent

Answer 9

If capitalists need to rent land/property to make more money

Question 10

Workers are free in two ways

Answer 10

1. Not apart of means of production

2. Do not own means of production

Question 11

Value of commodity

Answer 11

Average amount of social labor time needed to make it

Question 12

value of labor power

Answer 12

Determined by average amount of social labor time needed produce and reproduce the worker as a commodity
Capitalists must pay them enough to survive and reproduce the next generation of workers

Question 13

surplus value

Answer 13

Main means through which profit arises is in the process itself

Question 14

Necessary labor

Answer 14

Labor that is necessary to keep workers and families alive

Question 15

Surplus labor

Answer 15

Any type of labor that is not necessary to keep workers and families alive

Question 16

Capitalists must buy two things:

Answer 16

1. Efficient human labor power
2. Efficient resources of production
   tools, materials, machines

Question 17

Appropriation

Answer 17

Taking possession of surplus labor done by workers

Question 18

Exploitation

Answer 18

The result of appropriation; the consequence of capitalists taking the value of the workers surplus labors for themselves, this is how capital accumulates

Question 19

Variable capital

Answer 19

Money that is used to purchase labor power

Labor power adds variable amounts of value to commodities

Question 20

Constant capital

Answer 20

Money used to purchase resources of production
Value of those things are fixed
Generates equations