Taisho MillerDue date: 4-12-17Mr. PalmerBell 2Eugen von Böhm-Bawerk Eugen von Böhm-Bawerk was, living from 1851-1914, a famous economist.1 He served as the Minister of Finance of Austria three times.2 He served in 1893, 1896, and 1900; as a result, he is the only economist to appear on the Austrian currency.3 He appears on their 100-schilling note.4 He ended up becoming the chair of economics at the University of Vienna, and his lectures attracted famous students like Ludwig von Mises, Joseph Schumpeter, and Otto Bauer.5 Over his career as an economist, Eugen von Böhm- Bawerk had a lot of accomplishments. One of his accomplishments was regarding capital and production.6 Capital is defined as goods like tools, equipment, and machinery. Human fabrication addresses obtaining goods for consumption.7 This means people produce stuff just to use it. In production, the one and only industrial factors are and ought to be environment, industry, and land uses.8 This means that the industrial factors are the environment, an industry, and use of land. The accompanying of the deduction of time is a capitalist production way called “roundabout” method.9 This means a way of capitalist production comes along with the loss of time. There are three functions of the capitalist production.10 One function is the association with the implementation of the roundabout way.11 The capitalist production comes along with the roundabout method. The second function is regarding the accumulation of pure power.12 The accumulation of power allows for more production meaning more capital. Last but not least, the third function is an unintended source of new processes.13 capitalist production gives way to more processes. All in all, capital and production go together like bread and butter. Another accomplishment of his was regarding value.14 Value is a measurement. An item’s value is defined by the quantity of abundance actually dependent on it.15 This means an item’s value is dependent on the amount of the item. This is confronted by the notation that diamond has a higher value but pencils have less of a value.16 Meaning an item like a pencil is abundant had less value while diamonds are also abundant, but highly controlled output, and they are more valuable. The quick fix of this problem is to get rid of the controlled output along with the examination of the amount of the product.17 To have the same value for both of the products studied, pencils and diamonds, people have to have no control over the output and look at the quantity of the product being examined. The standardized trade gives most products a secondary value.18 The second value is for human well being because of the volume of bartered goods.19 This means the value is for the comfort of people because of the amount of bartered goods. The second value and the subjective-use-value clash.20 The value is decided by the bigger alternative implementation of both of them.21 This value is called subjective exchange value.22 All of this means both of those values go head to head and the winning value is based on the higher implementation of them; therefore, the value is called subjective exchange value. Marginal productivity is the relation of the want with their supplies.23 Meaning marginal productivity is the wants and their supplies. A complementary good is a good that is completely free for the consumer. The value of complementary goods are several goods assist approaching one service, the value of the entire group’s value is the group’s marginal value.24 This means complementary goods’ value is the group’s marginal value. If one pencil is complementary and the other pencils given out were complementary too then all of their value is the marginal value of the group of pencils. The conclusion of this is that there is a lot of factors that play into a product’s value. A third accomplishment by Eugen von Böhm-Bawerk is regarding prices.25 There is a fundamental law regarding price.26 The law has two parts. The first part theorizes the motive on which the reason of exchange is attempting after an economic benefit.27 This means the purpose of an exchange is trying after the economy has thrown a bone so to say. The other part is the condition of the trade which is that the people making the deal have put an array of values on the merchandise and the same price.28 This means the price is based off of the condition and the value. There is such thing as one-sided and two-sided competition.29 The two-sided competition has multiple conditions.30 Some of the conditions are the transactions are to be exclusive to the most suited people willing to enter, and another is the assessment of marginal pairs decides the pricing.31 These conditions mean only the people willing to get their feet dirty are allowed and a price is determined by marginal pairs. Price is chosen, in one-sided competition, by the subjective appraisal of actual and the most unsuccessful customer.32 This means a price is determined by actual and the least successful buyer. Just like value, there are a lot of components that go into price making. Another accomplishment of Eugen von Böhm-Bawerk was regarding sources of interest.33 A good that is durable has the financial worth which is all the things consisting of it, and an aid could gain complete and utter limited financial value and financial worth.34 This means a durable good would have the worth to which all the other items are belonging to it, and that one of those items and/or service could get their own worth and value. As the utility gets their own worth and value, the other services gain more value.35 As something is dwindled down to barely anything, the remaining material is worth a lot more. Regarding items that are durable which are also productive items, Eugen von Böhm-Bawerk said that there is a double paradox.36 The paradox is when the good’s utilities have ceased to exist; therefore, the utility is still destined to stay with the item until the completion. And because of it, the item or items form interest.37 The interest is apart of the already moving capital to which the item or items have been fused together.38 What all of this means is that when an item’s service has died off, the item then becomes interest, and the interest is glued to capital because of the item. Even under Socialism, the horrible form of government, there still would have interest.39 The interest would still be operating even if it was under socialism.40 Interest does not discriminate what form of government it is in. It still beats to its own drum. The worth and value of an item directly impact interest.