David Ricardo :: essays research papers

David Ricardo was born on April 19 1772 in capital of the United Kingdom and was the third son of 17 children. His pa betroths were very conquestful and his father was a wealthy merchant banker, making a fortune on the capital of the United Kingdom Stock Exchange. When he was 14, Ricardo joined his fathers business and showed a good mountain chain of economic affairs. However, he was disinherited by his parents when in 1793, he unify a Quaker, so he set up on his witness career as a stockbroker. He continued as a member of the stock exchange, where his ability won him the support of an eminent banking house. His success in this allowed him to retire at the age of 42. This enabled him to pursue his interests in publications and science, particularly in mathematics, chemistry, and geology.Along with Malthus, Ricardo was very concerned about the repair that rising populations would have on the economy. He argued that with more people, more shoot down would have to be cultivated . However, the return from this land would not be regular as the amount of capital available would not grow at the same rate. In fact the land would suffer from diminishing returns. spare land that was brought into cultivation would become more and more marginal in terms of profitability, and eventually returns would not be enough to attract any(prenominal) further capital. At this point the maximum level of economic rent would have been earned.The seeledge of comparative advantage enables countries to trade with other(a) countries more efficiently and knowing the opportunity cost than are forgone and making the good choices.It improves diplomatic relations between the trading countries.It also enables us to know which countries are relatively better at producing certain goods as compared to other countries.So,due to this theory,it allows trade between countries to improve their consumption of the goods in the market.