This lecture continues Yale instructor Paul North's chapter by chapter reading of Marx's Capital, Volume 1, addressing how value arises specifically through the act of exchange and what Marx means by labor within the capitalist system. North walks through Marx's account of the simple, elementary forms of value that Capital uses to build toward its fuller theory of commodity exchange. As with the rest of the series, the session treats the 1872 text as a close analytical object, tracking Marx's argument step by step rather than summarizing it. The lecture closes out the course's extended treatment of Chapter 1 before moving into exchange, money, and capital in the next classes.