ABSTRACT
Adam Smith’s theory of value is also situated in the context of a given empirical system with a well-defined physical surplus, which, in his case, is given by the natural productivity of land that produces food over and above the given cost of used up means of production, wages and profits. It is the ‘resolution’ of the physical surplus as ‘rent’ on food-producing land that defines the problematique of value in Adam Smith. His idea of ‘effectual demand’ as given demand points, requires him to begin his analysis with a given empirical system.
