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"Price is not the same thing as value. Suppose that on a day the price of everything viz., coal, bread, postage stamps, a day's labour, the rent of houses, etc. were to double. Prices then would certainly rise, but- values of all things except one would not."The writer wants to say that if prices of all things were doubled
- a)the values of all things would remain constant.
- b)the values of the things sold would be doubled.
- c)the values of the things bought would be halved.
- d)the value of money only would be halved.
Correct answer is option 'D'. Can you explain this answer?
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Verified Answer
"Price is not the same thing as value. Suppose that on a day the p...
The question is a little tricky. But, by simple logic, first you can eliminate options (a) and (b) since the question statement clearly mentions the value of all things would not rise or value of all things would not remain constant.
Now, you can eliminate option (c) by the logic that – the question statement mentions that value of all things except one would rise (so it can’t be halved for all).
Now, you can eliminate option (c) by the logic that – the question statement mentions that value of all things except one would rise (so it can’t be halved for all).
So, the answer that you have is (d). Now, you can definitely prove answer (d) by what you study in economics (value of money goes down in inflationary situations), but it is not economics here. Its a critical reasoning question. So be objective. Just follow the question statement and eliminate whatever is illogical or cannot be deduced from the question statement. Although option (d) is not very explicit in the question statement, it sounds better than the other three.
Most Upvoted Answer
"Price is not the same thing as value. Suppose that on a day the p...
Understanding Price vs. Value
The concept that price is not equivalent to value is crucial in economics. When the prices of all goods and services double, it raises questions about the actual value of those items.
Key Distinctions
- Price: This refers to the amount of money required to purchase a good or service.
- Value: This is the worth or utility of an item, which remains unchanged by price fluctuations.
Implications of Doubling Prices
- If all prices double, it does not imply that the intrinsic value of goods has changed.
- The value of coal, bread, postage stamps, labor, and rent remains the same.
Why Option D is Correct
- Value of Money: The only thing that changes in this scenario is the value of money itself. When prices double, the purchasing power of money is halved.
- This means that what could be bought with, say, $10 before the price change can now only be bought with $20.
- Therefore, the value of money decreases, effectively halving its capability to purchase goods and services.
Conclusion
In summary, when prices rise uniformly, the relative values of goods remain constant, but the value of money diminishes. This is why option D is correct: the value of money is halved in the context of doubled prices. Understanding this distinction helps clarify economic discussions about inflation and purchasing power.
The concept that price is not equivalent to value is crucial in economics. When the prices of all goods and services double, it raises questions about the actual value of those items.
Key Distinctions
- Price: This refers to the amount of money required to purchase a good or service.
- Value: This is the worth or utility of an item, which remains unchanged by price fluctuations.
Implications of Doubling Prices
- If all prices double, it does not imply that the intrinsic value of goods has changed.
- The value of coal, bread, postage stamps, labor, and rent remains the same.
Why Option D is Correct
- Value of Money: The only thing that changes in this scenario is the value of money itself. When prices double, the purchasing power of money is halved.
- This means that what could be bought with, say, $10 before the price change can now only be bought with $20.
- Therefore, the value of money decreases, effectively halving its capability to purchase goods and services.
Conclusion
In summary, when prices rise uniformly, the relative values of goods remain constant, but the value of money diminishes. This is why option D is correct: the value of money is halved in the context of doubled prices. Understanding this distinction helps clarify economic discussions about inflation and purchasing power.
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"Price is not the same thing as value. Suppose that on a day the price of everything viz., coal, bread, postage stamps, a day's labour, the rent of houses, etc. were to double. Prices then would certainly rise, but- values of all things except one would not."The writer wants to say that if prices of all things were doubleda)the values of all things would remain constant.b)the values of the things sold would be doubled.c)the values of the things bought would be halved.d)the value of money only would be halved.Correct answer is option 'D'. Can you explain this answer?
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"Price is not the same thing as value. Suppose that on a day the price of everything viz., coal, bread, postage stamps, a day's labour, the rent of houses, etc. were to double. Prices then would certainly rise, but- values of all things except one would not."The writer wants to say that if prices of all things were doubleda)the values of all things would remain constant.b)the values of the things sold would be doubled.c)the values of the things bought would be halved.d)the value of money only would be halved.Correct answer is option 'D'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about "Price is not the same thing as value. Suppose that on a day the price of everything viz., coal, bread, postage stamps, a day's labour, the rent of houses, etc. were to double. Prices then would certainly rise, but- values of all things except one would not."The writer wants to say that if prices of all things were doubleda)the values of all things would remain constant.b)the values of the things sold would be doubled.c)the values of the things bought would be halved.d)the value of money only would be halved.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for "Price is not the same thing as value. Suppose that on a day the price of everything viz., coal, bread, postage stamps, a day's labour, the rent of houses, etc. were to double. Prices then would certainly rise, but- values of all things except one would not."The writer wants to say that if prices of all things were doubleda)the values of all things would remain constant.b)the values of the things sold would be doubled.c)the values of the things bought would be halved.d)the value of money only would be halved.Correct answer is option 'D'. Can you explain this answer?.
"Price is not the same thing as value. Suppose that on a day the price of everything viz., coal, bread, postage stamps, a day's labour, the rent of houses, etc. were to double. Prices then would certainly rise, but- values of all things except one would not."The writer wants to say that if prices of all things were doubleda)the values of all things would remain constant.b)the values of the things sold would be doubled.c)the values of the things bought would be halved.d)the value of money only would be halved.Correct answer is option 'D'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about "Price is not the same thing as value. Suppose that on a day the price of everything viz., coal, bread, postage stamps, a day's labour, the rent of houses, etc. were to double. Prices then would certainly rise, but- values of all things except one would not."The writer wants to say that if prices of all things were doubleda)the values of all things would remain constant.b)the values of the things sold would be doubled.c)the values of the things bought would be halved.d)the value of money only would be halved.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for "Price is not the same thing as value. Suppose that on a day the price of everything viz., coal, bread, postage stamps, a day's labour, the rent of houses, etc. were to double. Prices then would certainly rise, but- values of all things except one would not."The writer wants to say that if prices of all things were doubleda)the values of all things would remain constant.b)the values of the things sold would be doubled.c)the values of the things bought would be halved.d)the value of money only would be halved.Correct answer is option 'D'. Can you explain this answer?.
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