GENERAL KNOWLEDGE

Detailed explanation-1: -Goods have exchange value and their ownership rights can be established and exchanged. It is not possible for sevices, market or revenue to have exchange value. None of the other options can have their ownership rights be established or exchanged for that matter.

Detailed explanation-2: -EXCHANGE-VALUE: The usefulness of a commodity vs. the exchange equivalent by which the commodity is compared to other objects on the market.

Detailed explanation-3: -Exchange value refers to “the power of purchasing other goods which the possession of [an] object conveys” (Smith [1776] 1960, p. 32); in other words, it expresses the relative price of a good in terms of other goods.

Detailed explanation-4: -Exchange value is the ratio in which one good exchanges for another. Perhaps one book exchanges for a loaf of bread… Or a new car exchanges for a thousand bottles of whiskey. These ratios are all exchange values. They say a book is worth this much bread; a car is worth this much whisky.

Detailed explanation-5: -No efforts are needed to be put forth by humans to secure free goods. They have value in use but no value in exchange. e.g. sunshine, rainfall, air, etc. Economic Good: These are the goods which are produced through human efforts and are to purchase at a given price.