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# Exchangeable Value

## Definition

The worth of a commodity in terms of what it can be exchanged for in the market, determined by the quantity of labour it can command or purchase rather than by its utility or nominal price.

## Source Chapter

Book I, Chapter 5

## Context

Smith establishes this as the fundamental concept underlying his theory of value, arguing that labour is the real measure of exchangeable value while money is merely a nominal measure.

## Economic Domain

Exchange

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