- Explain Ricardo's theory of rent and the law of diminishing returns. What policy conclusions did he draw from this analysis?
- Explain Ricardo’s theory of comparative advantage.
- Why did Ricardo focus on distribution rather than production?
- Explain Ricardo’s theory of distribution. Also explain why Ricardo believed that rent and profit are inversely related, and that that profit and wages are inversely related. That is, explain and show graphically that, as population grows and the demand for com rises, rents and wages go up, while profit falls.
- Why does Ricardo believe the economy will end up in a stationary (no growth) long-run steady state?
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