1.Means of Production refers to the physical, non-human resources used to produce goods and services, such as factories, machines, tools, and raw materials. For example, in a car manufacturing plant, the factory building, assembly lines, and robots are part of the means of production.
Labor is the human effort physical and mental used to produce goods and services. For example, the workers on the assembly line who operate machines, weld parts, and inspect cars before they leave the factory are providing labor.
2.Value in a Marxist sense is tied to the amount of socially necessary labor time required to produce a good or service. Something has value not just because it exists, but because labor has been put into creating it.
What gives value to something is the amount of labor that goes into making it, as well as the social demand for that item. For example, a handwoven rug has value because of the time and effort put into weaving it, but if no one wants to buy it, its market value might be low.
3.Labor creates value because products only become valuable when human labor is used to transform raw materials into something useful. The more labor in terms of time and effort put into making an object, the more value it has. However, due to market fluctuations, not all labor results in equal value.
4. Labor is the actual work performed physically making a product, providing a service, etc.
Labor Power is a worker’s ability to work, which they sell to an employer in exchange for wages.
For example, a factory worker is hired to work eight hours a day. The employer doesn’t just pay for the exact amount of labor done but rather for the worker’s labor power the potential to produce during those hours. The difference between what the worker is paid and the value they produce is key to understanding surplus value.
5.Surplus Value is the extra value created by workers but not paid to them in wages; it is kept by the capitalist as profit.
It’s important because it explains how capitalists accumulate wealth and how workers often receive less than the full value of their labor.
Example: If a worker in a shoe factory produces $200 worth of shoes in a day but is only paid $80 in wages, the remaining $120 is surplus value, which goes to the owner of the factory.