JAMB - Economics (2019 - No. 60)
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
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.
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