Who gave the surplus value theory of wage?

David Ricardo
Karl Marx
Adam Smith
F. A. Walker

The correct answer is B. Karl Marx.

Marx’s theory of surplus value is a theory of exploitation. It states that the capitalist class extracts surplus value from the working class by paying them less than the value of the goods and services they produce. This surplus value is then used to accumulate capital, which further enriches the capitalist class and impoverishes the working class.

Marx’s theory of surplus value is based on the labor theory of value, which states that the value of a commodity is determined by the amount of labor that is necessary to produce it. In a capitalist economy, the capitalist class owns the means of production, and the working class sells its labor power to the capitalist class. The capitalist class then pays the working class a wage, which is less than the value of the goods and services that the working class produces. This difference between the value of the goods and services produced by the working class and the wage that they are paid is called surplus value.

The capitalist class uses surplus value to accumulate capital, which further enriches the capitalist class and impoverishes the working class. The capitalist class uses surplus value to invest in new technologies, to expand their businesses, and to pay themselves higher wages. The working class, on the other hand, does not receive any of the surplus value that they produce. They are paid a wage that is just enough to keep them alive and working.

Marx’s theory of surplus value is a powerful tool for understanding the exploitation of the working class in a capitalist economy. It is a theory that has been used to justify socialist and communist revolutions around the world.