Value– economic value
Value is very important. While much has been said about it, let's cut to the bone. Most of us know something that has value from junk. Value is the usefulness or function or appeal of something compared to its cost, effort or inconvenience to the user. Value is a human judgement about resources. Value is also exchanged for money.
An expensive cell phone with limited range and often needs repair is said to have low value. (Who needs it? And why did I buy it?) An inexpensive cell phone that never drops calls and never needs repair is said to have high value. Something that one loves, like a wedding ring or a pet, has high (emotional) value to the owner, but less value to others. So, the value of each resource is different for everyone.
As seen at the right, the value of things increase as its function, usefulness and/or positive psychological effect increases. And value decreases as its cost and/or negatives increase. And, of course, value decreases as function, usefulness and emotional effect decreases– and cost and pain-in-the-butt increases.
Values are what we think of when we make decisions– and we make decisions all the time. ("What's best to do?") We usually weigh the functional, the positives and the likes against the costs and the negatives.
When value is exchanged, its exact worth is complicated. And since we all have such different ideas about it, we use money to try to get closer to an actual worth and to make the exchange fairer and more exact. This is called price negotiation. And this is why value is so very important. (Have you heard the red paper clip story where a man traded a paper clip for a house?)
If you know value, you can benefit from your exchanges. But you must have something to exchange. That's why increasing your own personal value should be important to you.
Value– perhaps the most important concept in practical economics is at the heart of BUX play. You are constantly making value decisions– some easy, some not so easy and some pull-your-hair-out difficult. Experience it. Play with it. Experiment with it. Practice learning, recognizing, creating and building it. Know when and where to sell it. Without value, you're not worth much in the job world. You have time now. Think about developing something you like and do best. It's a process.