Adam Smith and David Ricardo’s labor Theory of Value The labor theories of value were generated in response to the quest to determine what constitutes the price or value of a commodity, in other words, what renders value to a commodity? Classical theorists like Smith and Ricardo opine that a commodity derives its value from labor that goes into its production. In the labor theory of value, the amount of labor necessary to produce …showed first 75 words of 1749 total…

…showed last 75 words of 1749 total…variations. Conclusion: Many economist own intellectual debts to Adam Smith and David Ricardo’s labor theory of value. They proposed, contributed, and advanced the labor theory of value and laid the foundation for revolutionary ideas inherent in latter economist (most notable Karl Marx). In their own time, Smith’s and Ricardo’s theories had policy implication and stimulated debate on economic issues. Their labor theory of value was also instrumental in laying down economic laws.