EDUCATION (CBSE/UGC NET)

Detailed explanation-1: -Intrinsic Value Theory (also known as the Theory of Objective Value) is any theory of value in economics which holds that the value of an object, good or service, is intrinsic or contained in the item itself. These theories try to explain the exchange of value or price of a good or service.

Detailed explanation-2: -What Is Intrinsic Value? Intrinsic value measures the value of an investment based on its cash flows. Where market value tells you the price other people are willing to pay for an asset, intrinsic value shows you the asset’s value based on an analysis of its actual financial performance.

Detailed explanation-3: -The labour theory of value is an early example of an intrinsic theory, which was originally proposed by Adam Smith and further developed by David Ricardo and Karl Marx.

Detailed explanation-4: -Which type of values are described as the means to intrinsic values, such as making money to pay for enjoyable activities? extrinsic.