Outline the assumptions behind the classical economists’ labor theory of value.
ECON320 History of Economic Thought Assignment
Book you should be familiar with: History of Economic Thought by E.K. Hunt
People you should be familiar with: David Ricardo, Karl Marx
Answering three questions below. (Each answer should be no longer than two paragraphs or 1 page. Text should be double spaced) Please do not use ‘correct’ references. The essay should be in your own words.
1. Outline the assumptions behind the classical economists’ labor theory of value. (By assumption I
mean the presumed shape of the long-run supply curve, market structure, and the homogeneity of
labor.) To what extent do you think the labor theory of value could still be used today to explain
long-run relative prices.
2. How would you characterize the political views of David Ricardo on the role of government in managing
the economy? Given these views, why did Ricardo’s theory of value and distribution lead to the
rise of Radical Ricardianism? (EK Hunt is a good source here.)
3. Explain Marx’s theory of exploitation and evaluate its usefulness as a contemporary political
economic theory. Does the theory persuade you? Why or why not?
Answer preview to outline the assumptions behind the classical economists’ labor theory of value. 
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