Ricardo’s Theory of Distribution and Growth David Ricardo (1772-1823)
Yüklə
483 b.
tarix
25.07.2018
ölçüsü
483 b.
Ricardo’s Theory is Important for the Following Reasons
Historical Backdrop: Corn Laws
Ricardo sought to show how changes in distribution affect production
Assumptions Says law--supply creates its own demand, and whatever is saved is invested (accumulated).
Land is fixed and differs in fertility
Examples: land, a particular location, a living legend, etc.
The End of Capitalism Implications
How does Ricardo’s theory reflect his class interests
Ricardo’s Theory
of Distribution and Growth
David Ricardo (1772-1823)
“To determine the laws which regulate this distribution, is the principal problem in Political Economy.”
Ricardo’s Theory is Important for the Following Reasons:
Provides us with vision of the future
Explains why in Ricardo’s view investment
opportunities decline
Explains in simple terms the reason for rent
Historical Backdrop: Corn Laws
Corn Laws
imposed a tariff on the importation
of agricultural products
British Parliament was dominated by the landowning classes
Distribution and Production
Ricardo sought to show how changes in
distribution affect production
Ricardo contended that as the economy grows, rents rise,
squeezing profits
As profits are squeezed, economic growth declines
Assumptions
Say's law--supply
creates its own demand
, and whatever is saved is invested (accumulated).
Labor theory of value, prices are proportional to the quantities of embodied labor.
Agriculture is labor intensive, manufacturing is capital intensive.
Land is
fixed and differs in fertility
three classes
Rent
Return to an factor of production for which there are no substitutes or no “good” substitutes
Examples: land, a particular location,
a living legend
, etc.
Ricardian Rent
Ricardo defined rent as follows:
different between output on the most and least fertile land in cultivation
difference between costs of production on the most and least fertile lands in cultivation
The End of Capitalism?
Implications?
Why was Ricardo’s position regarding the corn laws? Explain.
What policies did Ricardo recommend?
What happens to economic growth over time as the population increases? Why?
How does Ricardo’s theory reflect his class interests?
:
faculty
faculty -> Aristotle on Slavery and Household Management
faculty -> Timothy Edward Pytell
faculty -> Human behavior dr. Elizabeth buchholz
faculty -> Biological Theories The Earliest
faculty -> What is temperament?
faculty -> Wiley Series on Methods and Applications in Data Mining
faculty -> April 26, 2012 Dr. Lyle and Dr. Pilgrim
faculty -> Logging Into Studentweb Version 10 ftp addresses
Dostları ilə paylaş:
Verilənlər bazası müəlliflik hüququ ilə müdafiə olunur ©genderi.org 2019
rəhbərliyinə müraciət
Ana səhifə
Psixologiya