  A representation of economic activity in the form of a law of conservation of
value is presented based on the definition of value as potential to act in an
environment. This allows the encapsulation of the term as a conserved quantity
throughout transactions. Marginal value and speed of marginal value are defined
as derivatives of value and marginal value, respectively. Traditional economic
statements are represented here as cycles of value where value is conserved.
Producer-consumer dyads, shortage and surplus, as well as the role of the value
in representing the market and the economy are explored. The role of the
government in the economy is also explained through the cycles of value the
government is involved in. Traditional economic statements and assumptions
produce existing hypotheses as outcomes of the law of conservation of value.
