The Labor Theory of Value is an economic theory that suggests the value of a good or service is determined by the amount of labor required to produce it. According to this theory, the more labor that goes into creating a product, the higher its value. This concept is often associated with the works of economists like Adam Smith and Karl Marx. In this framework, labor is seen as the primary source of value, contrasting with other theories that emphasize supply and demand or market conditions. The theory implies that workers should receive compensation that reflects the value of their labor, influencing discussions on wages and economic equity.