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9 votes
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What is the average economic value of a human life?

It depends on the context, of course, but most often in policy analysis "the value of a life" has nothing (directly) to do with output, etc, but instead means the maximum amount that people would want ...
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6 votes
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What is the difference between present value and face value?

Suppose the face value of a bond is $M$ and its interest rate is $\tau$. This means it will pay $\tau \cdot M$ interest every year (other periods are also possible) and at the end of its run (its ...
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6 votes

Why isn't there an "ideal value" for a given currency?

Because money is really just arbitrary numbers, and those numbers only really have any meaning in relation to the other numbers in the set. For example: Average salary is \$50,000 and a entry-level ...
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6 votes

What's a "correct price" really? Does it exist?

tl;dr as KennyLJ correctly points out the concept of correct price is meaningless and it does not exist or rather you could say any price is the correct price (but again this just makes the whole ...
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5 votes
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Is it correct to say that wealth is "destroyed" when an asset bubble bursts?

We need to distinguish two things here: the intrinsic value of the assets, and their fair value, or market value. No matter how much the price of an asset changes on financial markets (say, stock ...
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5 votes

In this scenario, which coin is more valuable?

The word 'valuable' is not well defined in this question. If I am willing to buy an apple from you for \$1 and but I am only willing to sell an apple to you for \$4 which is more valuable: An apple ...
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5 votes
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Accounting for machines in the labor theory of value

"I have read that the Labour Theory of Value holds that the value of a good or service is determined by the total amount of labour involved in its production." That would be Adam Smith's version of ...
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5 votes
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The Myth of Exploitation According to the Labor Theory of Value

The whole point of the (specific) Labor Theory of Value that you apparently refer to, is that, what Labor "injects" as value into goods produced, is more than what Labor needs to consume in order to ...
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5 votes
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GDP simple question got me confused: the sale of a capital asset

No, the sale of a capital asset doesn’t count in GDP, as the cost of the asset was already accounted for when the plane was first sold to Delta. To your second point, if a broker somehow provided a ...
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5 votes

Why does fiat money have value?

The answer, that can be found in greater detail in the following book Rudolf Richter, Money — Lectures on the Basis of General Equilibrium Theory and the Economics of Institutions, Springer, 1989. ...
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4 votes

How to value market size?

You might want to check out Fermi estimation. XKCD did a very accessible example of Fermi estimation being used to estimate paint production. This method can be quite good at providing estimates ...
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4 votes

Normalizing comparisons of corporations and countries

GDP is a flow (of goods and services) while market capitalization is a stock measure. So I agree, this is not a great comparison. If we want to compare stocks, we'd compare total enterprise value (sum ...
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4 votes

Why is Uber worth almost as much as Boeing?

A big part of the answer to this question must surely be network effects. Yes, Ford has a lot of engineering talent. But so has GM. This means that Ford has to compete with GM to sell cars, and this ...
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4 votes

What is the wealth of a company?

The "wealth" of a company is not a well-defined term. The worth of a company, its market value, is whatever someone is willing to pay for it. The market's best guess of that value, for listed ...
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  • 8,002
4 votes

What is the value of something?

There is a lot to be said about this subject, and I will only give a partial insight. First off, value is subjective. Everyone will place different values on different things, depending on such ...
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  • 329
4 votes

How can you know which is the "current dollar value" of a dollar value from another decade?

There are quite a few websites which will do a point-to-point calculation for you, if all you want is the comparison of the CPI. For example, https://www.measuringworth.com/uscompare/ Saying how ...
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4 votes

What is the difference between microeconomics money and macroeconomics money?

There is no distinction between money in microeconomics or macroeconomics. In both fields money is medium of exchange, unit of account and store of value. The misconception you have probably arises ...
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4 votes

What does the price of bitcoin per ounce of gold tell us?

It's BTC per Oz gold which shows how many btc you need to pay for 1oz. To compute this, you need to know the price (and both are quoted in USD). It still tells you a lot about the purchasing power. A ...
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  • 155
3 votes
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What is the difference between shareholder's equity, equity, and book value?

Equity is defined as The value of an asset less the value of all liabilities on that asset. [source] This is a rather broad definition and equity can take on different forms. E.g., for a house, ...
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3 votes

In this scenario, which coin is more valuable?

Since the exchange ratio of A to B is 10 to 1 in the first transfer and 5 to 1 in the second, it is clear that B is more valuable, although as @denesp says the exact value ratio is undefined. It's a ...
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  • 6,813
3 votes

What is the difference between present value and face value?

"And also does this have anything to do with discounting vs. coupon bonds, etc?" It does. Assume a bond without coupons, to be fully re-paid in a single payment. On it ("face value" $\equiv B$) the ...
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3 votes

What is the difference between present value and face value?

Think of it this way: A dollar today is worth more than a dollar tomorrow Why? Because today you can invest it, and have more money tomorrow! How much more money? It depends on the interest rate. ...
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  • 141
3 votes
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Securities Prices in Financial Markets

The total wealth (as is pointed out in the book) is given as : $$ X(1)=\delta_{0}B(1)+\delta_{1}S_{1}(1)+...\delta_{N}S_{N}(1) $$ The wealth at period one is just the sum of the securities (including ...
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3 votes

Do large public companies ever "quit while they're ahead"?

Assume a company decides to "wind up". What would happen? Its competitors would want to get hold of its tangible and intangible assets (like customer base, patents etc). How is this different from "...
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3 votes

Why isn't there an "ideal value" for a given currency?

There is a long, theoretical answer to your question. I'm going to give a much abbreviated version, and some pointers to some excellent theoretical literature on the topic. The immediate answer is ...
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  • 1,048
3 votes

Factoring Technology into Economics models

Yes, this is pretty standard stuff in economics. First, the simplest models contain it in a hidden form. Supply curves are derived from production functions, and include (marginal) cost of ...
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  • 244
3 votes

Do contemporary Marxist economists still deny the utility/value theory which underpins classical economics?

Conteporary Marxist economist Richard D Wolff says on the issue (abridged): The labor theory of value is not a theory is not a theory of prices. The prices of things is determined based on whats ...
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  • 7,685
3 votes
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Today's value of the Louisiana Purchase?

The video has a transcript with the references. The \$0.25B figure is obtained from here (after adjusting for inflation). Unfortunately, the author does not provide a source for the \$1.2B figure. ...
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