ENTREPRENEURSHIP

Detailed explanation-1: -According to Ricardo rent arises as the difference between production of Marginal land (On which zero rent accrues) and superior land. As there is general tendency to move from most fertile land (Attracts highest rent) to the less fertile land, a point comes where no rent accrues to what is called a Marginal land.

Detailed explanation-2: -Theory. Innovation economists believe that what primarily drives economic growth in today’s knowledge-based economy is not capital accumulation as neoclassical economics asserts, but innovative capacity spurred by appropriable knowledge and technological externalities.

Detailed explanation-3: -David Ricardo developed the classical theory of comparative advantage in 1817 to explain why countries engage in international trade even when one country’s workers are more efficient at producing every single good than workers in other countries.

Detailed explanation-4: -Ricardo argued that trade gains could arise if countries first specialized in their comparative advantage good and then traded with the other country. Specialization in the example means that the United States produces only cheese and no wine, while France produces only wine and no cheese.