Question

• Consider the components of Smith’s methodology and discuss the reson why Ricardo shifted to abstract analytical method.

Answer 1

The components of Smith methodology are related to the Nation's wealth. The Smith considers the monetary factors in the economy means all the factors which are related with the monetary transactions and which enhances the economic growth and development on the basis of gross domestic product and gross national product.
Productivity is very important in the Smith methodology because it focuses on the Rise of monetary value in the economy.
The consideration in the components of smith methodology is totally based on the condition of values of economic development.
There are various components related to smith methodology are natural capital produced Assets and human resources.
Ricardo shifted to an abstract analytical method because of the Ricardian approaches related to the very famous theory of productivity in return of the workforce.
The famous rent theory of Ricardo differentiate the Productivity of land into four categories and the concept of gross and net is also related with the Ricardo and the analytical study and the comprehensive study related with the mathematical tools is used by Ricardo in their economic structure.