Economics : Answer Question

1NameUnit nameUnit codeDateThe principle of political economy and taxation (1817 ) developed by Ricardo was one of his greatest achievement and contributed much to economic theories at that time and to economist who came after him . His analysis mainly return on how a fixed amount of wealth is distributed among the trinity classes namely filth owners who receive take in , labourer whose check with is lucre and entrepreneurs or capital owners who receive profit . He then(prenominal) set out some laws which regulated the public exposure of income and from his work the following economic laws can be extracted (Cunningham , 1994The chassis 1 law is that apostrophize of business is determined by prices in addition the amount of labour used in drudgery of goods and services determines their value . Further much cost of pro duction also influences value of items . His third law i .e . the guess of rent was based on prediction of people maturation .

Where there is development in population then more food is required to feed the growing consider of hatful this in turn will necessitate the civilisation of little fertile land . Therefore according to Ricardo rent for land was determined as the difference between the intimately and least(prenominal) productive piece of land as measured by price of wheat per acre . The growth in population leads to add-on in rent at the expense of enlists and profitThe four and 5th laws were conc erned with natural price of labour and wage ! fund (amount of capital in circulation . According...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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