A primitive society in the form of a family and a clan existed in such a way that everyone provided himself and his relatives with necessary foodstuffs, housing, clothes and other benefits. However, as society developed, a division of labor occurred . This phenomenon caused the quality of the products, but inevitably led to the lack of any benefits for every person.
So, for example, the butcher did not have cereals, and the one who grew wheat did not have pork. The
exchange of goods helped to satisfy the needs of each of them
. But for this operation, a certain amount of the so-called excess products was needed, which would remain after everyone satisfied their needs for manufactured things. That is, the butcher in order to exchange pork for other products, it was first necessary to provide himself with meat in full, and then make with the raw materials left after that. This brief excursion into history illuminated the path to this phenomenon.
Thus, earlier this word “product” had the meaning of surplus production. Now the products are made specifically for their exchange or sale.
What is the product at present? Let's try to figure it out.
Product Attributes
What is a product? The easiest way to determine the value of an object is to describe its properties.
The first quality of this phenomenon is the ability to exchange for other things. Thus, a product is any thing that is not limited in circulation. The second distinguished property is the ability to satisfy any of the needs of people, that is, utility for a person. Thus, we can say that a commodity is a product of labor, created for the good of society. And finally, the third quality describes the purpose of the production of things. After all, each product is created for its further sale or exchange. The realization of things involves obtaining certain benefits. Consequently, the product of labor produced for sale is a commodity. We figured out the properties.
Commodity theories
In the literature there are currently two main fundamental approaches to understanding the meaning of what a product is.
The first theory, of course, is Marxist. This approach considers the product as a useful result of the labor activity of people, which is intended for sale. This definition takes into account the ability to satisfy human needs with such things, the goal of creating products and their connection with human labor. The second approach to understanding what a product is was provided by the
Austrian School of Economics. Representatives of this concept call products produced for exchange,
economic benefits. Thus, another property of the product stands out - its quantity is always limited in comparison with human needs. Therefore, this approach takes into account the correlation between the need for good and its accessibility. No matter how many theories exist, the essence of this phenomenon is the same, but everyone looks at it from their own point of view and based on personal interests and priorities.