Adam Smith's Theory of value stated that the value of a commodity depended on________

  • A The market price in a free market over a long period
  • B The over-all cost of production of the commodity
  • C The amount of labour expended on its production
  • D Its relative scarcity at any given time
jamb 2019economics

The correct answer is C. The amount of labour expended on its production

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.

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