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: Option C

C. The amount of labour expended on its production

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.