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 think on how a fixed amount of wealth is distributed among the terzetto classes namely filth owners who receive rent , labourer whose settle with is lucre and entrepreneurs or capital owners who receive profit . He then set out some laws which regulated the diffusion of income and from his work the following economic laws can be extracted (Cunningham , 1994The number 1 law is that cost 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 population maturation .
Where there is development in population then more food is required to feed the growing number of hatful this in turn will necessitate the cultivation of little fertile land . Therefore according to Ricardo rent for land was determined as the difference between the most and least(prenominal) productive piece of land as measured by price of wheat per acre . The growth in population leads to increase in rent at the expense of wages and profitThe quaternary 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:
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