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David Ricardo (1772-1823) was a British economist and politician who developed the theory of comparative advantage and the law of diminishing returns. He was a leading figure in the classical school of economics and a proponent of free trade and laissez-faire.
- Early Life and Education
- Notable Accomplishments
- Published Works
- The Bottom Line
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Born in England in 1772, one of 17 children, David Ricardo began working with his father as a stockbroker at the age of 14. He was disowned by his father at 21, however, for marrying outside his religion. His wealth came from his success with a business he started that dealt with government securities. He retired at the age of 41 after earning an e...
Comparative Advantage Theory
Among the notable ideas that Ricardo introducedwas the theory of comparative advantage, which argued that countries can benefit from international trade by specializing in the production of goods for which they have a relatively lower opportunity cost in production even if they do not have an absolute advantagein the production of any particular good. For example, a mutual trade benefit would be realized between China and the United Kingdom from China specializing in the production of porcela...
Labor Theory of Value
Another of Ricardo's best-known contributions to economics was the labor theory of value. The labor theory of value states that the value of a good could be measured by the labor that it took to produce it. The theory states that the cost should not be based on the compensation paid for the labor, but on the total cost of production. One example of this theory is that if a table takes two hours to make, and a chair takes one hour to make, one table is worth two chairs, regardless of how much...
Theory of Rents
Ricardo was the first economist to discuss the idea of rents, or benefits that accrue to the owners of assets solely due to their ownership rather than their contribution to any actual productive activity. In its original application, agricultural economics, the theory of rents shows that the benefits of a rise in grain prices will tend to accrue to the owners of agricultural lands in the form of rents paid by tenant farmers. Ricardo's idea was later also applied to political economics, in th...
In his Essay on the Influence of a Low Price of Corn on the Profits of Stock(1815), Ricardo conceptualized the law of diminishing returns with respect to labor and capital. Ricardo wrote his first article on economics, published in The Morning Chronicle, at the age of 37. The article advocated for the Bank of England to reduce its note-issuing acti...
David Ricardo was an 18th-century English economist renowned for his contributions to economic theory. He developed the comparative advantage theory, labor theory of value, and the theory of rents, which have founded other schools of thought and form the basis of current economic policies and decisions. Although best known for his work in economics...
Learn about David Ricardo, a classical economist who developed the theory of comparative advantage, labor theory of value, and theory of rents. Find out his life story, achievements, and publications in this comprehensive article.
Sep 6, 2024 · Learn about David Ricardo, an English economist who systematized classical economics and advocated laissez-faire doctrines. Explore his contributions to money, trade, distribution, and population theory.
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Learn about the life and achievements of David Ricardo, the influential British economist who developed the Classical system of political economy. Explore his major works, his role in the Bullionist Controversy, his views on money, trade and rent, and his impact on economic theory.
Learn about the life and achievements of David Ricardo, one of the most influential economists of all time. He developed the law of diminishing marginal returns, the theory of comparative advantage, and the theory of rents, among other insights.
Jan 18, 2024 · Learn about the life and legacy of David Ricardo, a prominent 19th century economist and trader who developed the principle of comparative advantage. Explore his contributions to economic theory, his opposition to the Corn Laws, and his influence on free trade and globalization.
Jun 11, 2018 · Learn about the life and work of David Ricardo, a prominent British economist and stockbroker who influenced the development of classical political economy. Explore his contributions to the theory of value, distribution, rent, and capital accumulation.
