CHAPTER 8

1. Define the concepts of constant capital and variable capital. What is the significance of the adjectives “constant” and “variable”?

2. How are these concepts derived from Marx’s theory of value and surplus value?

3. What is the difference between machinery and raw materials with respect to the transfer of their value to the final product?

4. What effect is technological change likely to have on the ratio of constant capital to variable capital?

CHAPTER 9, Section 1

1. Define the concept of the rate of surplus value? In what sense does the rate of surplus value summarize Marx’s theory of surplus value?

2. Define the concepts of necessary labor time and surplus labor time.

3. According to Marx, what distinguishes the different types of economic systems?

CHAPTER 9, Section 3

1. Summarize Senior’s “last hour” theory of profit.

2. Summarize Marx’s critique of Senior's theory.
What is Senior’s key theoretical mistake, according to Marx?