Adam Smith: An Introduction To Political Economy

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Assignment on Introduction To Political Economy Submitted By Sunil Ganpat Jiwane Roll Number : 23 MASW (RD) 1st Semester Course Title :Introduction To Political Economy Submitted To Pro. Sudheer Tata Institute Of Social Science 2014-15 MA(RD) First Year - First Semester Introduction To Political Economy Que: Write a short essay on any two of the following . ( 2*10 = 20 marks) Que 2) Adam Smith…show more content…
Division of labour is limited mainly due to the small size of the market.That is, if there is more demand for a good,it will produce more and has a large scope for the application of the division of labour in order to increase the production rate. By the division of labour increases the production i.e. Output from the applied labour, increases the skills and the efficiency of workers, saving in time so that production rate will increase. By the introduction of machinary there was greater risk of unemployment.According to Adam smith there are two kind of Value: 1)Value in use 2)Value in…show more content…
He concluded that a high or a low rent is the effect of a high or low product price”.but this theory developed by David Recardo .according to him, “rent is the portion of the product of the earth which is paid to the landlord for the use of the origional and undestructible powers of the soil”. rent of land can be increase by increase in the productivity of land, simultaneously decline in the profits, through which he had dispute with the “Corn Laws” which was in the favour in order to protect the landlords from importing tarriff on them. Rent theory has some assumptions are as follows: “1) The rent is changes with the change in the fertitlity of the land, also the surplus getting from the land changes with the fertility of the land. 2) If we concider land “A” is more fertile than land “B” then the rnt from land “A” will be more than the land “B”. 3) Rent theory concider the law of diminishing returns. 4) Different land has different rate of productivity 5)Rent theory is asociatd with the perfect compettion”. Rent is used to compare the different advantages from the superior land over the marginal

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