Question

What is the main difference between Ricardo and Adams? And how that represent history development with the economic theory development?

Answer 1

Ricardo's theory of labour is that value of labour used in production of a good is on the basis of wages paid according to work done in production.

On the other hand, Adam Smith's labor theory of value said that the value of labor used for producing a good cannot be measured in terms of wages. It is based on toil and trouble and thus is subjective and immeasurable.

Both these theories led to the economic development that labour cannot be simply measured in terms of wages or in terms of trouble. Everything should be inculcated to measure value of inputs used in production of goods.