by calculating the price of all of the materials
The social contract principle was introduced during the Enlightment era due to the contribution of both Jean-Jacques Rousseau and John Locke's work and ideas.
The principle describes how the power of a state resides on its citizens, who can grant it to political representatives that are elected through suffrage. Hence, citizens give up their share of state power (their individual rights). In turn, the elected representatives would propose and implement policies on their behalf. This principle is the base of modern representative democracies.
