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 shopping center on how a fixed amount of wealth is distributed among the lead classes namely primer owners who receive rent , labourer whose visit is earnings and entrepreneurs or capital owners who receive profit . He then set out some laws which regulated the dispersion of income and from his work the following economic laws can be extracted (Cunningham , 1994The physical body one law is that cost of ware is determined by sets in addition the amount of labour used in issue of goods and services determines their value . Further to a greater extent cost of production also influences value of items . His trinity 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 move the growing number of hoi polloi this in turn will take on the cultivation of little fertile land . Therefore gibe 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 spending 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! hope to get a full essay, order it on our website:
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