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The concept of value is rarely questioned in everyday life and is often equated with price. However, if one considers the concept of what gives a thing or a good its value, one quickly realises that this leads to a complex issue. More than 200 years ago, the economist David Ricardo explored the value of goods, building on the foundations laid by Adam Smith. The philosopher and economist Karl Marx both expanded upon and criticised these approaches. By examining the differing approaches of these two economists, one can gain a clear picture of the concept of value in theoretical economics.
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