Understand Ricardo\'s Rent Theory in its simple incarnation as a model. How is e
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Understand Ricardo's Rent Theory in its simple incarnation as a model. How is economic rent determined in the model? Is there a natural alignment between the interests of labor and capital and in what way? 4-What does Say's law of Markets Imply and Why? What is the basic idea of Ricardo's Chapter on Machinery. What does this imply for the harmonious society promised by Smith? Contrast Bentham's Utilitarianism with Smith's Theory of Moral sentiments. Contrast Smith's Theory of Moral Sentiments. Bcntham's Utilitarianism and the theories of the early socialist thinkers Owen. Saint- Simonc, and Fourier. Contrast Smith's Theory of Moral Sentiments. Bcntham's Utilitarianism and the theories of the early socialist thinkers Owen. Saint-Simonc. and Fourier. I*f - !(,% 17Exploitation means something very specific in Marx's economics. What is it and how does it relate to his labor theory of value. How is Marx's Labor theory of value different from Ricardo's labor theory of value?What are the central tenets of the marginalise school of thought?,J)9:ContraM the value theories of Smith. Marx and the Contrast J.S. Mill's understanding of distribution with John Bates Clark's theory of distribution Understand the different ideas of equilibrium as presented by Cournot's monopoly model of duopoly model.Explanation / Answer
13. According to the Ricardo’s theory of Rent, People use superior grade of land for cultivation rather than inferior grade land. Superior land has more productivity than the inferior land.
The difference between the ‘value of productivity’ between the superior land and inferior land is called Economic rent on land.
As the population increases, there will be shortage of superior land and people moves to inferior land. In Inferior land more labour and capital is required. Increase in population reduces marginal productivity of labour.
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