ABSTRACT
The concept of a mode of production is a useful tool in trying to characterize an economy under investigation. In the Marxist model, the mode of production is composed of two distinct entities: the relations of production and the forces of production. The relations of production describe the relationship between the owners of the means of production and the producers, who, through some form of agreement, work for the owners. The interaction of the relations of production with the forces of production is evident in the process of private capital accumulation which is itself dependent upon production for the market. According to Marxist theory, capitalism entails a system of "extended commodity production" in which production by the hired worker exceeds the consumption of the employer. The production of commodities of greater value than the cost of the production process yields a "surplus value," which is then realized by the sale of commodities for money.
