markitect-main/examples/infospace-with-history/output/entities/price-in-labour.md

Price in Labour

Definition

The measurement of a commodity's value by the quantity of labour it can command or purchase, representing the amount of work that can be obtained in exchange for the commodity. This is Smith's formulation of real price.

Source Chapter

Book I, Chapter 5

Context

Smith introduces this concept as one of two ways to price commodities, contrasting it with price in money. He argues this is the more fundamental measure of value because labour was the original purchase money for all things.

Economic Domain

Exchange

---