Economics 1021A/B Study Guide - Quiz Guide: Gold Standard, Irredeemable, Absolute Advantage
mariameelguendou and 38538 others unlocked
94
ECON 1021A/B Full Course Notes
Verified Note
94 documents
Document Summary
Theory of comparative advantage: trade still mutually beneficial even if one country has absolute advantage in both goods. Comparative advantage is defined as that good where absolute advantage is greater or where absolute disadvantage is lesser. Labour theory of value: the exchange value of a commodity is the amount of labour time expended to produce it, to be used by karl marx in his laws of motion. Successive units of capital and labour when added to fixed unit of land with technology remaining constant will add less to total output than previous units. Hence, this is one of the earliest developments of the marginalist principles. As population increases, wages fall to their natural price: when market price of labour is smaller than natural price, misery reduced population growth so that wages rise again. Ricardo was against the poor laws just like. Malthus but : ricardo favoured the abolition of the corn laws that enriched the landlords.