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 boil down on how a fixed amount of wealth is distributed among the ternion classes namely primer owners who receive rent , labourer whose penalise is earnings and entrepreneurs or capital owners who receive profit . He then set out some laws which regulated the spread of income and from his work the following economic laws can be extracted (Cunningham , 1994The fleck one law is that cost of ware is determined by monetary values in addition the amount of labour used in issue of goods and services determines their value . Further to a great extent cost of production also in fluences value of items . His tierce law i .e . the system of rent was based on prediction of population maturation .

Where there is outgrowth in population then more food is required to consecrate the growing number of hoi polloi this in turn will bring the cultivation of little fertile land . Therefore consort to Ricardo rent for land was determined as the difference amid the most and least productive piece of land as measured by price of wheat per acre . The growth in population leads to increase in rent at the put down of wages and profitThe fourth and 5th laws were concerned with natural price of labour and wage fund (amount of capital in circulation . According...If you indirect request to get a full essay, order ! it on our website: OrderEssay.net

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