1-Means of Production and Labor: The means of production refers to privately owned, capitalistic production, such as tools, machines, factories, and materials necessary for producing goods. For example, a furniture factory and its machines are part of the means of production. Labor is the human part like effort experiences and skills that combine physical and mental that go into producing goods and services. For example, a factory worker operating a wood machine to produce furniture is performing labor.
2-Understanding Value: Depending on Marxist theory, value is measured by the necessary labor time required to produce a good or service. This means that something becomes valuable because of the labor that goes into making it under normal circumstances, rather than just its usefulness or rarity. For example, a handmade wooden chair takes more labor time to produce than a mass-produced plastic chair. According to Marxist theory, the handmade chair has more value because of the greater amount of labor required to create it. Thus, what makes something valuable is not just its material or usefulness but the amount of human labor invested in its production.
3-Labor and Value: Labor creates value. The more labor time it takes to produce something under standard conditions, the more value it holds in a capitalist economy. However, employers seek to maximize profits by paying workers less than the full value of what they produce. For example, if a worker produces a pair of shoes in two hours, and the employer pays them for only one hour of work, the extra value from that unpaid labor goes to the employer as profit. In short, labor is what gives value to commodities, but workers do not receive the full value of what they produce.
4- The difference between labor and labor power is crucial in Marxist theory: Labor is the actual work performed using that labor power to produce goods or services. Labor power is a worker’s capacity to work with the ability, skills, and energy they bring to a job. This is what a worker sells to an employer in exchange for wages. in short, labor power is what the worker sells; labor is what they do.
5- Surplus Value: in Marxist economics, surplus value is the difference between the value a worker creates through their labor and the wages they are paid. It represents the unpaid labor that generates profits for the employer. Surplus value explains how capitalists gather wealth while workers remain economically dependent. It reveals the exploitative nature of capitalism, where workers do not receive the full value of what they produce. Example of Surplus Value, a worker in a bags factory: the worker is paid only $100 for the day. They make 10 pairs of shoes in an 8-hour shift. Each pair sells for $50, meaning the total value of their work is $500.