- In Smith’s view, what are the differences between capital, profit, and rent?
- What is the difference between Smith’s “Wage Fund” and the way you were told that wages were determined in Econ 201
- Explain Malthus’ Population Doctrine. How does he “prove” that no matter how hard we work, population will always outweigh Earth’s productive resources. Why have Malthus’ predictions not happened yet?
- Describe Ricardo’s Labor Theory of Value (LTV). How is he able to describe all costs of production in terms of labor? How does his “Iron Law of Wages” allow him to state the value of a day’s labor in terms of food?
- if the value of all goods produced come from the labor used to make them, where does profit come from?
- Describe Ricardo’s theory of rent. Does Ricardo regard the rent a farmer must pay for his land as contributing to the value of his crops
Week 4 10/30 Classical Theories of Value (Smith, Malthus and Ricardo) Spiegel Chapter 11 (243 – 254) Spiegel Chapter 12 (all), Spiegel Chapter 13 (to page299) Spiegel Chapter 14 (to page 333)