ECONOMIC VALUE

Value of a product or service known by individuals’ preferences and tradeoffs they select to create given the limited resources or the value the market places on an item. It is represented by the biggest amount a consumer is able to pay for an item in a free market economy, or the time a person will devote in order to attain a government-rationed good in a socialist economy. Conversely, market value indicates the lowest amount a consumer is willing to pay.