1. Means of production refers to the physical and non-physical resources needed to produce goods. A factory is an example of means of production. Labor is the human effort (both physical and mental) used in the creation of goods and services. An example of labor would be the role of an employee in a company.
  2. Value refers to the worth of a good/service. This can be determined by various factors, including demand, and the production costs. Something holds value based on the labor invested in it and the resources used. Additionally, social demand can dictate the value of a good/service.
  3. The value of a product is often determined by the labor that goes into creating it. Typically, the more labor-intensive a product is to make, the higher its value.
  4. Labor power is the worker’s ability to work; like their potential to do a job over a certain period of time. Labor on the other hand, is the actual work that the worker does and the effort they put in during a specific task. In short, labor power is the capacity to work, while labor is the work done.
  5. Surplus value is the difference between what workers are paid and the value of the goods and they produce. For example, if a worker is paid $20 per hour but produces goods worth $50 in that hour, the surplus value is $30. This concept is crucial in understanding social classes because it illustrates how capitalists generate profit from labor.

Leave a Reply