ECON 307

In Class Exercise Sixteen - Marx and Capitalism

1.  How did Marx define capitalism?

2.  According to Marx -- material relations alone determine value -- relate this to the labor theory of value.

3.  What is "socially necessary value" or labor?  Relate this to the wage - as per Marx.

4.  What was a working day made up of?  Was there a minimum to the working day?  Maximum?  Explain.

5.  What was "use value" according to Marx?  Where did it come from?  How was it different from the wage paid to the laborers?  Relate this to surplus value.

6.  According to Marx, competition will drive down the surplus value (profits) for the capitalists.  This will happen for two reasons.  Explain both.  Make sure you can explain why the capitalists would want to increase or accumulate more capital in your answer.

7.  Competition would lead to only a few capitalists surviving and more exploitation of the working class.  This would all lead to the revolution (class conflict).  Explain the steps to getting there.

8.  Any other questions over this material?