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
Correct Answer: 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.
