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IAI Actuarial Core Principles · Business Economics · Main economic schools and their key features

In Marx's analysis, 'surplus value' arises because:

Surplus value arises because workers create more value during the working day than the value of their labour power, which is paid as wages. The capitalist keeps the difference as profit, even though exchanges occur at value.

  1. ACapitalists sell goods above their value in every exchange
  2. BWorkers are paid the full value of the goods they produce
  3. CThe value workers add in production exceeds the value of their labour power paid as wagesCorrect
  4. DInterest rates exceed the rate of profit
  5. Governments tax wages to fund public spending

Explanation

Labour power is bought at its value (the cost of subsistence), but during the working day workers create more value than this. The difference is surplus value, which the capitalist appropriates as profit. Option 0 is wrong because Marx explained surplus value without unequal exchange.

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