Concept:Adam Smith’s theory of value links a commodity’s value to the labour required to produce it.
Explanation:Adam Smith argued that in the early stages of society, the amount of labour used in producing a good is the main factor that decides its value.
This means the more labour a commodity requires, the higher its value becomes.
He did not base value primarily on market price, total production cost, or scarcity alone.
Therefore, value depends on the quantity of labour expended on production.
Answer:C. The amount of labour expended on its production