


utility - effective usefullness

cash balances

economic/financial value

economic items




work activity

+ec value
+utility
+economic items
+economic value



trading


buying

-cash value
+utility
+economic items



selling

+cash value
+utility
-economic items



transaction cost (buying or selling), may be minor or significant

-ec value
-utility
-economic value



utility, an economic modelling concept that the effective value of goods varies accoring to the individual and situation, not purely just the financial value, e.g.
$100 of several fruits may be preferred to $100 of one fruit although the financial value is the same

