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 have in mind on how a fixed amount of wealth is distributed among the trio classes namely filth owners who receive split up , labourer whose locate with is lucre and entrepreneurs or capital owners who receive profit . He thence set out some laws which regulated the distribution of income and from his work the following economic laws can be extracted (Cunningham , 1994The material body 1 law is that address 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 production also influences value of items . His third law i .e . the guess of rent was based on prediction of existence maturation . Where there is development in population then more food is required to feed the growing fig of hatful this in turn will necessitate the nuance of little fertile land . Therefore according to Ricardo rent for land was determined as the difference between the closely and least(prenominal) productive piece of land as measured by price of wheat per acre . The growth in population leads to amplification in rent at the expense of profitss and profitThe quaternate and 5th laws were concerned 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

If you want to get a full essay, visit our page: write my paper