Economics 493/593
Winter 2012
Homework 4
Due Thursday 2/9/2010
1. Why did Ricardo focus on distribution rather than production?
2. Explain Ricardo's theory of rent and the law of diminishing returns. What policy conclusions did he draw from this analysis?
3. Show graphically that, as population grows and the demand for corn rises, rents and wages go up, while profit falls.
4. What is utilitarianism? How did Bentham's utilitarianism lead him to egalitarian reform proposals? Why didn't he advocate complete equality of income?
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