The Exchange Theory of Value proposes that the value of a good is based on what people are willing to give up in order to get it. was developed by David Ricardo. replaced the Labor Theory of Value previously accepted by economists. fails to resolve the question of the intrinsic value of goods. is rejected in favor of the Labor Theory of Value by Marxists. is one of the fundamental concepts in economics. is consistent with the Labor Theory of Value. does not answer the question whether some goods are more valuable because of what they are, rather than simply what people are willing to give up for them.