Adam Smith was an 18th century Scottish economist considered the father of modern economics. He developed the theory of value which states that the value of a good is determined by the amount of labor required to produce it. However, this only applies to primitive societies. In modern capitalist societies, the value or price of a good is made up of the costs of production including labor costs, profit, and rent for land usage. Smith's theory of value helped establish the basis for modern economic thought, though it is not fully applicable in complex market economies.

1. Adam Smith Theory of Value

2. Who is Adam Smith? What is Theory of Value? What is the utility ofthat?

3. 123 Who is Adam Smith?

4. A Clown!!!

5. The most reputable economist of XVIII century The basis of all modern economic theories FOR US HE IS A GOD!!!

6. born in 1723 in the Kirkcaldy, Scotland at age 14 the University of Glasgow 1740 Balliol College in Oxford 1748 lectures in Edinburgh 1751 Professor of logic at Glasgow University Died on July 17, 1790

7. 1748 - 1785 Theory of Moral Sentiments An Inquiry into the Nature and Causes of the Wealth of Nations Thoughts on the state of competition with America

8. 123 What is theory of value?

9. "Work is the only universal, as well as the only accurate measure of value"

11. 2 conditions of that theory

12. 1 Value (and price) of goods is determined by labor expended on it. Cost - it is labor materialized in the commodity

14. 2 Cost (and price) is made up of cost of production of goods, in other words, from labor costs, profit and rent for land.

16. Profit Rent for Land Salary

17. 123 What is the utility ofthat?

18. 1 condition only for primitive society 2 condition is for realistic situation in modern capitalistic world

19. Thanks for attention!!!