Economics • Economic BasicsMedium
What is meant by the term 'Surplus Value' in classical economic theory?
A. The excess of total revenue over total cost for a firm
B. The value produced by a worker over and above their labor-power's own value, appropriated by the capitalist✓ Correct Answer
C. The extra utility derived by a consumer when price is less than willingness to pay
D. The additional tax revenue collected by the government during an economic boom
💡 Solution & Explanation
Karl Marx defined surplus value as the economic value created by laborers beyond the cost of their own wages, which is systematically expropriated by the capitalist employer. Traditional neoclassical economics interprets profits through risk-taking and entrepreneurial efficiency rather than labor exploitation frameworks. This concept forms the cornerstone of Marxist critique of capitalist accumulation.
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