Adam Smith's value theory of labor posits that the value of a good is determined by the labor required to produce it. In his seminal work, "The Wealth of Nations," Smith argues that labor is the primary source of wealth and that the division of labor enhances productivity. He distinguishes between "use value" and "exchange value," suggesting that while goods may have intrinsic utility, their market value often reflects the labor invested in them. This theory laid the groundwork for later economic thought, influencing the development of classical economics.
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According to Karl Marx, the source of all value was the labor that is expended in the production of goods and services. He believed that the value of a commodity is determined by the amount of socially necessary labor time required to produce it. This concept is known as the labor theory of value.
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The labor of theory value is a incorrect idea. The labor theory of value is that the more labor the higher the cost. This is incorrect because if 2 people with different skills make the same products but the more skilled one makes 2x the amount of products as the unskilled one, the labor theory of value is that the more skilled ones products are less valueble. This also applies to things that people don't want like a poorly made or not useful product, a product with no use to humanity but that took a very long time would be given a value for more then the components that made it and far more then anyone wants it for, so that falsely inspires people to waste resources.
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The labor of theory value is a incorrect idea. The labor theory of value is that the more labor the higher the cost. This is incorrect because if 2 people with different skills make the same products but the more skilled one makes 2x the amount of products as the unskilled one, the labor theory of value is that the more skilled ones products are less valueble. This also applies to things that people don't want like a poorly made or not useful product, a product with no use to humanity but that took a very long time would be given a value for more then the components that made it and far more then anyone wants it for, so that falsely inspires people to waste resources.
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(in Marxist theory) the excess of value produced by the labor of workers over the wages they are paid.
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The labor of theory value is a incorrect idea. The labor theory of value is that the more labor the higher the cost. This is incorrect because if 2 people with different skills make the same products but the more skilled one makes 2x the amount of products as the unskilled one, the labor theory of value is that the more skilled ones products are less valueble. This also applies to things that people don't want like a poorly made or not useful product, a product with no use to humanity but that took a very long time would be given a value for more then the components that made it and far more then anyone wants it for, so that falsely inspires people to waste resources.
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The labor of theory value is a incorrect idea. The labor theory of value is that the more labor the higher the cost. This is incorrect because if 2 people with different skills make the same products but the more skilled one makes 2x the amount of products as the unskilled one, the labor theory of value is that the more skilled ones products are less valueble. This also applies to things that people don't want like a poorly made or not useful product, a product with no use to humanity but that took a very long time would be given a value for more then the components that made it and far more then anyone wants it for, so that falsely inspires people to waste resources.
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Dialectical materialism (diamat), historical materialism (histomat) and the Labor Theory of Value.
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According to Karl Marx's theory of labor value, a manufactured product is worth only the amount of labor which has gone into its making. Many economists and socialists who are not Marxists have concluded that the labor cost of obtaining raw materials from which a product is made at a factory, for example, is included in the actual value of the finished product. Using their ideas about labor value, the intrinsic value of the raw materials cannot be placed as part of the final value of the workers' labor.
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Marx argued that all wealth is produced through labor. He believed that labor is the source of value in society and that the capitalist system exploits labor to generate profits for the ruling class. Marx's labor theory of value asserts that the value of a commodity is determined by the amount of socially necessary labor time required to produce it.
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Copyright allows creators to ascribe value to their creativity, imagination, and hard work. In economics, this is known as the labor theory of value; in philosophy, it is linked to Locke's second treatise.
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COMMUNISM,answerd by ROBERT HARDY 9-21-09
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Ugo Pagano has written:
'Work and welfare in economic theory' -- subject(s): Division of labor, Economics, Value, Work
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Albert Conser Whitaker has written:
'History and criticism of the labor theory of value in English political economy' -- subject(s): Great Britain, Value, Economics, History
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The Theory of Investment Value was created in 1938.
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Karl Marx is expounded the theory of division of labor.
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The law of value (German: Wertgesetz) is a central concept in Karl Marx's critique The labour has to materialize itself in some kind of object which has value.
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The Theory of Harmonial Value was created on 2001-08-07.
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Marx referred to the difference between what workers produce and what they are paid as "surplus value." This surplus value is captured by the capitalist as profit, leading to exploitation of the workers according to Marx's theory of surplus labor.
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conflict theory
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conflict theory
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David Gordon has written:
'Resurrecting Marx' -- subject(s): Labor theory of value, Liberty, Socialism
'Ludwig von Mises' -- subject(s): Bibliography
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In theory, it is the Secretary of Labor.
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Karl Marx's theory of the fetishism of commodities suggests that in a capitalist society, people attribute mystical powers to commodities, seeing them as having inherent value and power. The secret behind this fetishism is that it actually stems from the social relations of production, where the labor of workers is hidden and the true source of value is obscured.
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Two other aspects of the Ricardian theory of profits need to be examined before we turn to J. S. Mill's statement of the classical position: (1) a theoretical failure of Ricardo's theory of value, and (2) its use by some to criticize the prevailing distribution of income. After wrestling for a long time with the role of profits in his value theory, Ricardo concluded that changes in the rate of profits played an insignificant role in explaining changes in relative prices over time. He decided that although relative prices depended theoretically upon the costs of both labor and capital, with the cost of capital being profits, the role played by profits in practice was so insignificant that they could be ignored. Thus, Ricardo's theory of value was in effect a cost of production theory with labor being the only cost. This aspect of Ricardo's theory of value attracted the attention of various economists who were compelled to improve the logical consistency of value theory by including capital costs as well as labor costs of production.
Such concern for the theory of profits was intensified by the attacks of the Ricardian socialists, who used Ricardo's value theory to show that labor was being exploited. They argued that labor produced the entire product but did not receive all its product as wages. Profits were a deduction from labor's rightful share; the capitalists, like the landlords, were parasites in the system who received an income while performing no essential economic function. Their argument was simple, and for that reason it could be used effectively in popular criticism of the existing economic order. It was, then, both to correct the logical defects of Ricardo's value theory and to buttress the prevailing ideology against the attacks of the Ricardian socialists that economists turned their attention to profits.
The most significant contribution to profit and value theory in the early post-Ricardian period was made by Nassau Senior, who first attempted to develop an abstinence theory of interest. In his value theory, Senior emphasized utility on the demand side more than did Ricardo, and when he came to the supply side, he emphasized disutility as a real cost of production. Using the basic psychological assumptions of classical economics, he maintained that people were rational and calculating. Wages, he said, are the reward paid to labor for incurring the pain of working. If we are to produce capital goods, someone must abstain from consumption, and the capitalist will not abstain unless he is rewarded for this pain. Because both capital and labor are necessary to produce final goods, their price must be sufficient to pay both of these real costs of production. Thus, Senior developed a cost of production theory of value with wages being the return to labor and profits being the return to the providers of capital. In classical economics, no distinction was made between profits and interest. Senior attempted to develop a theory of interest, which was a predecessor to the Bohm-Bawerkian theory developed near the end of the nineteenth century. Senior actually developed only part of a theory of interest, for his discussion deals solely with the supply side, in keeping with classical tradition. He examined only the forces that determine the supply curve of savings, whereas a theory of interest would also have to account for the demand for investment. As an argument against the socialists, Senior's abstinence theory of interest has several defects. He suggested that the supply curve of savings is perfectly elastic (horizontal) and that the pain cost, or disutility, incurred in saving is the same for the wealthy as for the poor. Because he dealt with interest exclusively as a payment for the pain costs, or disutility of forgoing consumption, no social or economic justification is given for the receipt of interest on capital that is acquired by inheritance or by gift. Thus, in the end, Senior's theory of interest probably raised more questions concerning the social justification for interest than it answered.
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In the capitalist system, profit is generated by extracting surplus labor from workers. This means that workers produce more value than what they are paid in wages. The capitalist system accumulates wealth by taking this extra value created by workers and turning it into profit for the owners of the means of production.
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Theories of value, or value theory, is a philosophy that examines what people value, how much they value it, and why. Value theory is often applied economically in an exchange of goods, but can also be applied ethically with regards to virtue and vice.
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Karl Marx was not considered a marginalist in economic theory. Despite his significant contributions to the field of economics, Marx's labor theory of value and emphasis on class struggle differed fundamentally from the marginalist school of thought, which focused on individual decision-making based on marginal utility.
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Smith believed that the word value has two different meanings, and sometimes expresses the utility of some particular object, and sometimes the power of purchasing other goods which the possession of that object conveys. The one may be called "value in use"; the other, "value in exchange." The things which have the greatest value in use have frequently little or no value in exchange; and on the contrary, those which have the greatest value in exchange have frequently little or no value in use. Nothing is more useful than water: but it will purchase scarce any thing; scarce any thing can be had in exchange for it. A diamond, on the contrary, has scarce any value in use; but a very great quantity of other goods may frequently be had in exchange for it. Because Smith was somewhat confused about the factors determining relative prices, he developed three separate theories relating to them. (1) a labor cost theory of value, (2) a labor command theory of value, and (3) a cost of production theory of value. He postulated two distinct states of the economy: the early and rude state, or primitive society, which is defined as an economy in which capital has not been accumulated and land is not appropriated; and an advanced economy, in which capital and land are no longer free goods (they have a price greater than zero).
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David Ricardo was an economist, not a philosopher. His key ideas included the theory of comparative advantage, which argues that countries benefit from specializing in producing goods they are best at, and the labor theory of value, which suggests that the value of a good is determined by the amount of labor required to produce it. Ricardo also contributed to the development of classical economics with his concept of diminishing returns.
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Specialization and division of labor
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J.R Hicks has written:
'The theory of wages' -- subject(s): Wages, Labor economics, Unemployed, Labor unions
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Some of the key theories of wages include the classical theory, which states that wages are determined by the supply and demand for labor in the market; the neoclassical theory, which emphasizes the role of productivity and marginal revenue product in determining wages; and the bargaining theory, which suggests that wages are determined through negotiations between employers and workers. Additionally, the dual labor market theory posits that there are two distinct segments of the labor market with different wage-setting mechanisms.
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When labor tasks become divided, productivity increases.
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Material index, labor and agglomeration and deglomeration.
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A value that cannot be physically measured. It's a value known only in theory. (such as the size of a graviton)
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If it is assumed that labor rate based on sales value then labor cost:
labor cost = 240000 *0.4 = 96000
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Human relations theory focuses on the value, needs and contribution of the employee; classical theory's emphasis is the good of the organisation and the work.
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In color theory, value refers to the lightness or darkness of a color, while shade refers to the darkness of a color when black is added to it.
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Donald L. Martin has written:
'An ownership theory of the trade union' -- subject(s): Labor economics, Labor unions, Property
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General administrative theory consists of coordinating organized tasks within a company. Henri Foyal pioneered the theory by trying to come up with the most rational way to organize labor divisions.
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iam looking for the solution to the above question
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After visiting the pin factory, Adam Smith developed the theory of division of labor, which states that breaking down tasks into smaller, specialized parts can increase productivity and efficiency. Smith's observations at the pin factory highlighted the benefits of specialization in the production process.
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What do you mean by "value"?
Certainly, if a theory is supposed to have scientific value (if it tells us something new about the world around us), there must be evidence to support it, or else it were a bad theory (or actually not a real theory at all).
However, every scientific theory starts off as a hypothesis, which is basically just a "quaint idea". By testing that hypothesis (and obtaining positive results), it might actually be developed into a real theory. If the evidence speaks against the hypothesis, the idea just dies right there (or at least it should).
So, a hypothesis has to be testable to have value (so it can "grow" into a theory).
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Luis Riveros C. has written:
'Efficiency wage theory, labor markets, and adjustment' -- subject(s): Economic aspects, Economic aspects of Labor supply, Economic aspects of Wages, Employment (Economic theory), Labor supply, Wages
'Wage and employment policies in Czechoslovakia' -- subject(s): Wages, Labor mobility, Cost of living adjustment
'The impact of labor costs on manufactured exports in developing countries' -- subject(s): Econometric models, Labor costs, Manufacturing industries, Exports
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A scientific theory must be based on many repeated correct experiments; also this theory must be related with other accepted theories.
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Paul Thompson has written:
'Working life' -- subject(s): Arbeidsanalyse, Arbeids- en organisatiepsychologie, Labor economics, Employment (Economic theory), Labor
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