The labor theory of value is an economic concept 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 idea 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 labor theory of value helps explain how workers' contributions can influence pricing and economic systems, particularly in capitalist societies.