Question

a- What is the main difference between the “net product” of the physiocrats and the concept of value in Smith and Ricardo?

b- How did Marx’s times help him develop his own specific labor theory of value?

c- How does an individualist (selfish) conception of human nature affect an economic system of thought?

Answer 1

a- Net product of physiocrats defines the excess of wealth produced over and abovewhat is required. Where as the concept of value in Smith and ricardo, Adam Smith states that in a primitive society the amount of labour put into producing a good determined it's exchange value​​​​​​, with exchange value meaning in this case the amount of labour a good can purchase... This theory was ricardo's alone theory. b-During karl Marx times there were huge exploitation to workers by not paying the efficient labor cost. For example if a shoe sells at a cost of 80 dollar,only 1.45 dollar is paid as labor to worker where remaining cost is only about 18 dollar required for raw materials, finally capitalists get a profit of about 60 dollar per shoe. ​​​​​This system of capitalism was majorily a part in marx times this helped him to explain "labor theory of value": value of any commodity is equivalent to the amount of labor required to produce it (including the labour required to produce raw materials and machinery used in the process) c-selfishness behaviour of human nature affect economy. Power and money is not get splited , and one holds major economic resources.This can leads unemployment,poverty etc. In today's world individualy holding companies work on the principles of rationalism, willpower and selfishness. Enhancing small micro scale business,group business needs to limit selfishness behaviour of major wealth makers. ​​​​​