Final answer:
According to economists, a thing has value if it has utility and scarcity, which determine its worth in monetary terms. Utility is the satisfaction an item provides, and this varies among individuals. In a barter system, a double coincidence of wants is needed for trade, whereas money simplifies exchanges by representing value to facilitate transactions.
Step-by-step explanation:
What gives a thing value, specifically in the context of its ability to be exchanged for something else, is closely tied to the concept of utility and wealth. Utility is the usefulness of an item, which must provide the purchaser with some level of satisfaction, contributing to the item's perceived value. This satisfaction is subjective and varies from one person to another. For example, one individual may value attending concerts highly because of the enjoyment they derive from the experience, illustrating the utility of the concert ticket for that individual.
From an economic standpoint, an object or service has value if it is scarce and possesses utility. This scarcity means that there is a limited supply of the item, which combined with its utility, leads to a monetary valuation people are willing to pay. The concept of wealth is inherently connected to the accumulation of valuable items, which can serve as a means to an end, such as generating more capital or providing a functional benefit.
One interesting example of how value is perceived is the paradox of value. This paradox illustrates the discrepancy between the high utility but low monetary value of items like water, necessary for life, against items like diamonds, which have high monetary value but relatively low utility in terms of survival needs.
Furthermore, in a barter system without money, a double coincidence of wants is necessary for a trade to occur, where each party has what the other wants. Money simplifies this process, being of no intrinsic value itself but gaining value through its ability to facilitate the exchange for goods and services, according to the utility it provides in this role.