Question

The English economist David Ricardo argued that Group of answer choices None of the answers is correct grain prices were high because land rents were low. grain prices were high because land rents were high.

Answer 1

Answer:

land rents were high because grain prices were high..

Explanation:

grain prices were high because land rents were high.

land rents were high because grain prices were high.

grain prices were high because land rents were low.

land rents were high because grain prices were low.

none of the above

David Ricardo was a classical economist known for various economic theory. Some of his theories include :

1. Labour Theory of Value
2. Ricardian Equivalence
3. Theory of comparative advantage
4. Theory of rent

Theory of rents

David Ricardo defined rest as the part of the produce of an agricultural land that is paid to the landowner for the use of the land.  He postulated that  benefits of an increase in prices of grain accrue to land owners in the form of rent

He used this theory to answer a question that arose during the Napoleonic wars (18.05-1815)  when there was a great increase in corn and land prices. The question was : Did the rise in land prices raise the price of corn or did the high price of corn increase the demand for land and led to an increase in the price of land ?