Key Ideas

1. Comparative advantage: David Ricardo introduced the concept of comparative advantage, which states that countries should specialize in producing goods in which they have a lower opportunity cost.

2. Labor theory of value: Ricardo's book argues that the value of a good is determined by the amount of labor required to produce it.

3. Rent theory: Ricardo proposed the theory of economic rent, which explains how the price of land and other natural resources is determined.

4. International trade: Ricardo emphasized the benefits of international trade and argued that it leads to increased produ....
.....

Quiz