Biography
What was the cause of David Ricardo's Death ?
The cause of his death was due to a ear infection that progressed to an life threatening condition known as Septicaemia, also known as blood poisoning.
countries can benefit from specializing in the production of goods and services where they have a lower ______
opportunity cost
What was the real life example used and briefly explain it
Industrial Revalution
what inspired David Ricardo's interest in economic matters from a young age ?
Growing up in a family with a legacy of stockbroker, Ricardo was exposed to the world of financial matters and investments . This exposure to financial concepts and theories evolved over time, likely sparking his interest in economic matters.
Who inspired David Ricardo for the comparitive advantage theory
Adam Smith
What puts downward pressure on wages, gradually bringing them back to subsistence levels?
Larger Families
Why were bonds a wise financial investment placed by Ricardo at the time ?
the aftermath of the napoleonic war meant that the government now able to return the substantial amount of debt gained during the war, was in a position to sell bonds once again for the economy. Their value was set to rise as the government redeemed its debt
What were 3 Assumptions for the comparative advantage theory
Multple answers possible
How did the Iron Law Of Wages benifit society.
Awarness which led to a protest to make to help with workers living conditions
how did Ricardo deal with the ongoing criticism he faced upon his theories ?
Despite the adversity he faced, Ricardo dealt with these challenges by actively engaging in public debates and defending his ideas through his writing and articles. He took it upon himself to justify his ideas and theories, responding to opponents in a professional manner.
What was the trade relationship between Saudi Arabia and Chilie and how does it relate to comparative advantage
This trade relationship benefits both countries. Saudi Arabia gains mass amounts of copper which is the main metal of interest for companies, while Chile gains access to a reliable source of energy from oil. This exchange of goods contributes to the economic well-being of both nations.
What are the two assumptions mentioned about iron law of theory
Population increases at a fast rate
The law of diminishing returns applies to food production
how did the industrial revolution contribute to the making of Ricardos theories ?
The changes brought about by the industrial revolution such were integral to the development of his theory of comparative advantage. Based on these factors he argued that countries should specialise in the production of goods that they can produce most efficiently. The expansion of industrial trade occurring during this era offered practical examples that supported his theory.
What is the overall concept of the comparative advantage theory
Comparative advantage is a concept that explains how countries can benefit from specializing in the production of goods and services where they have a lower opportunity cost.
Breifly explain the critiques mentioned about the Iron Law Of Wages
The assumption that all workers receive equal wages, as implied by the subsistence theory, is unrealistic. Workers do differ in terms of their skills, productivity, and the value they bring to their employers. In contrast, Ricardo's theory acknowledges that wages can vary depending on these factors, but suggests that they tend to remain close to subsistence due to population dynamics.