Question

What were David Ricardo's economic perspectives?

Answer 1

Answer - David Ricardo's economic perspectives are as follows -

1 - He felt that the nation could increase its export by specialising in the production of any commodity. He named it the comparitive advantage.

2 - He stated that the cost of the good can be computed by the labor cost which has been spent on it. It was called the Labor theory of value

3 - He stated in his Rent Policy that if the farmers gain in the production or the rise in the prices of the grains , some part of that gain should be given the owner of the land on which the farmer worked.

4 - He in his Equivalence theory stated that , whether the government earns money though increased tax and spends it on development , or it borrows from other sources , the effect on the economy will be same as the consumers are rational.