According to classical economic theory, which term is equivalent to a property's "value is use"?

Study for the ASU REA380 Exam 2. Prepare with flashcards and multiple choice questions, each question includes hints and explanations. Get ready for success!

The term "value in use" refers to the value a property has based on its utility to a particular owner or user rather than its market value or exchange price. In classical economic theory, "investment value" captures the concept of value in use by considering how much a specific investor might be willing to pay for a property based on the anticipated future benefits it will provide to them. This could include rental income, personal use, or other benefits tailored to the individual’s needs and circumstances.

Investment value focuses more on the unique characteristics and circumstances surrounding the specific user's context, making it more aligned with the notion of value in use compared to terms like market value or selling price, which are determined by broader market forces and conditions.

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