According to Marx's Theory, the Difference Between the Value of a Raw

question 36

Multiple Choice

According to Marx's theory, the difference between the value of a raw material and the actual product is called

• A) surplus value.
• B) exploitation.
• C) marginal cost.
• D) inelastic demand.

---

Definitions:

Self-Control Problems

Refers to the difficulty people have in sticking with earlier plans and avoiding suboptimal decisions when finally confronted with a particular decision-making situation. A manifestation of time inconsistency and potentially avoidable by using precommitments.

Time Inconsistency

The human tendency to systematically misjudge at the present time what will actually end up being desired at a future time.

Behavioral Economists

Economists who study the psychological, cognitive, emotional, cultural, and social factors on the economic decisions of individuals and institutions.

Precommitments

Actions taken ahead of time that make it difficult for the future self to avoid doing what the present self desires. See time inconsistency and self-control problems.