University of Cincinnati
Department of Economics
Economics 1002 Jeffrey Stewart, Ph.D. Section 004 Fall 2022
STUDY QUESTIONS # 1
1. What are the two facets of a mode of production according to E.K. Hunt? Define them.
The forces of production and the social relations of production
The forces of production: Constitute the productive technology of a society (These
consist of the current state of productive or technical knowledge, skills, organizational
techniques, as well as the tools, implements, machines, and building involved in
production.)
Social relations of production: The relationship between the working class and the upper-
class
2. What is the first essential feature of capitalism? Market- Oriented Commodity
a. Identify and define the two aspects of a commodity.
Use Value: A commodity is valued for its use in satisfying our needs
Exchange Value: Products that can be sold for money
b. What is the most important aspect of the commodity for capitalist producers?
Provide the reasons supporting your conclusion.
Exchange value because capitalist are trying to obtain as much capital as possible.
With that being said, they would only be focused on selling a product for money.
c. Is production for direct use in capitalism? If not, how are people’s needs and
wants satisfied? Analyze this process.
No, production is for exchange value in capitalism. People’s wants and needs
aren’t necessarily a concern to capitalists who are worried strictly about the
benefits it may be bring.
d. What are the two implications of exchange value’s importance for capitalist
producers?
3. What is the second essential feature of capitalism? What does this mean?
Private ownership of the means of production: Society grants to private persons the right
to dictate how the raw materials, tools, machinery, and buildings necessary for
production can be used.
a. Define means of production.
Raw materials, tools, machinery, and buildings necessary for production.
b. What are the two implications of this essential feature of capitalism?
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An owner- capitalist needed to play no direct role in the actual process of
production in order to control it.
It was the ownership that permitted the capitalist to appropriate the social surplus
c. Define social surplus.
That part of a society’s material production that is left over after the necessary
material costs of production have been deducted
4. What is the third essential feature of capitalism? A large working class
a. What is the only commodity working class members own?
Their capacity to work
b. Define labor power.
Human productive power
c. Do members of the working class have a choice to sell labor power or not? No
Provide the reasons in the form of logic or evidence supporting your conclusion.
5. Analyze E.K. Hunt’s version of the fourth essential feature of capitalism. In particular,
what accounts for this behavior in workers and capitalists?
Capitalism has always been characterized by a competitive struggle among capitalists to
secure larger shares of the social surplus.
If one capitalist acquires more capital than another, he may cause the other to fold.
6. Analyze Adam Smith’s labor theory of value.
Differing amounts of labor required to obtain commodities seemed to be the only rule
which could explain the quantities of each traded.
7. Analyze David Ricardo’s labor theory of value.
Relative values of commodities were determined by the relative amounts of labor
necessary for their production even when land had been appropriated and capital
accumulated.
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8. Analyze Karl Marx’s labor theory of value. Define socially necessary labor time. Define
abstract labor.
The value of a commodity can be objectively measured by the average of labor hours
required to produce that commodity
Socially necessary labor time: The amount of labor time performed by a worker of
average skill and productivity
Abstract labor: General labor, labor without reference to the concrete activity of labor
9. Define objective. Define subjective.
Objective: not influenced by personal feelings
Subjective: Influenced by personal feelings
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10. What are the three contemporary economic schools of thought? To what economic
school of thought do Frank, Bernanke, Antonovics & Heffetz belong?
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