1. Means of Production refers to the facilities, tools, and capital equipment necessary for the production of goods. An example is a factory where machines are used to manufacture cars. Labor is the human effort either physical or mental, that is used in the production process. In this case, workers in a factory assembling cars.
  2.  As seen in the video, value in economic terms generally refers to the worth of a good or service. It is determined by the amount of necessary labor time spent in its production. What gives value to something, making it valuable, is essentially the labor that goes into producing it.
  3. Labor and value are directly related in that labor is what creates value. The value of a product is fundamentally based on the amount of labor that is required to produce it.
  4. Labor is the actual work that employees do whereas labor power is something else entirely. Labor Power refers to a worker’s capacity or ability to perform work and is considered a commodity that workers sell to capitalists, who in turn use it to generate products and profits. Labor power is what the worker sells in return of wages, not the labor itself.
  5. The difference between the value created by labor and the salary of the employee is known as surplus value. It is an important idea to understand social classes and capitalist profit since it represents the value that employers gain from their employees’ labor. The surplus value is $100, for instance, if a worker receives $50 to make goods that sell for $150.

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