Adam Smith’s Theory of value stated that the value of a commodity depended on________
- The market price in a free market over a long period
- The over-all cost of production of the commodity
-
The amount of labour expended on its production
- Its relative scarcity at any given time
The correct answer is: C
Explanation
Value means the power that goods and services have to exchange other goods and services. The value of a commodity depends on the satisfaction it can provide and the amount of labour used in production.