Labor theory of value

Labor theory of value
   This theory, elaborated by classical economists, most notably David Ricardo in 1817, who had preceded Karl Marx, is the starting point for Marx’s own theory of surplus value or exploitation. According to the labor theory of value the value of any object (or to be more precise any commodity) is to be measured in terms of the amount of labor embodied in it. In other words, the value of a commodity is determined by the labor time required to produce it. So if it takes one day to produce a chair and two days to produce a table, then the value of the table is twice that of the chair. Different people will take different amounts of time to make a given commodity, so the labor theory of value takes an average, the “socially necessary labor time.” The value of any given commodity is based on the socially necessary labor time to produce it, that is, the time required to produce the commodity under average conditions of production, with average degree of skill and intensity of labor.

Historical dictionary of Marxism. . 2014.

Look at other dictionaries:

  • Labor theory of value — The labor theories of value (LTV) are theories in economics according to which the values of commodities are related to the labor needed to produce them.There are many different accounts of labor value, with the common element that the value of… …   Wikipedia

  • Labor Theory Of Value — An economic theory that stipulates that the value of a good or service is dependent upon the labor used in its production. The theory was first proposed by Adam Smith (1723 1790), the founder of modern economics, and was an important concept in… …   Investment dictionary

  • labor theory of value — a theory of value holding that the quantity of labor in a product regulates its value and utilized by Marx to claim for labor the sole rightful claim to production …   Useful english dictionary

  • Theory of value (economics) — Theory of value is a generic term which encompasses all the theories within economics that attempt to explain the exchange value or price of goods and services. Key question in economic theory include why goods and services are priced as they are …   Wikipedia

  • Labor theory of property — The labor theory of property is a natural law theory that holds that property originally comes about by the exertion of labor upon natural resources. (This is not to be confused with a labor theory of value).In his Second Treatise on Government …   Wikipedia

  • Subjective theory of value — The subjective theory of value (or theory of subjective value ) is an economic theory of value that holds that to possess value an object must be both useful and scarce, [Moser, John. The Origins of the Austrian School of Economics, Humane… …   Wikipedia

  • Intrinsic theory of value — This article is about the philosophy of economic value. For valuation of financial assets, see Intrinsic value (finance). An intrinsic theory of value (also called theory of objective value) is any theory of value in economics which holds that… …   Wikipedia

  • Cost-of-production theory of value — In economics, the cost of production theory of value is the theory that the price of an object or condition is determined by the sum of the cost of the resources that went into making it. The cost can compose any of the factors of production… …   Wikipedia

  • Criticisms of the labour theory of value — often arise from an economic criticism of Marxism. Contents 1 Microeconomic theory 2 Supply and demand 3 Jevons 4 Menger s critique …   Wikipedia

  • Value (economics) — Economics …   Wikipedia