Question 1
a). Population growth force wages down to subsistence wages. True and by David Ricardo
b). When a fixed input is combined in production with a variable input, using a given technology,
increases in the quantity of the variable input will eventually depress the productivity of the variable
input.
Question 2
According to Ricardo, there are three parties in the bitter struggle; the worker, the capitalist, and the
landlord. Discuss the fate of each of these parties
Question 3
Define the following
Iron Law of Wages
Extra Questions in preparation of the test
Question 4
In the Space provided below, fully explain with a suitable argument, which of the philosophers you
prefer the most amongst Smith, Malthus, Ricardo, Owen or Mills.
Question 5
To which philosopher(s) does the following statements belong? There may be more than one
philosopher that made the same statements. Please tick all appropriate.
Statement
1). The human animal tends to double its numbers
in 25 years, but where health is better, it would
double every 15 years
Adam
Smith
Thomas David
Malthus Ricardo
2). High prices is a self-curing disease
3). Population growth force wages down to
subsistence wages
4). Does not favor any one class, but seeks to
improve the welfare of the community as a whole.
5). “the very nature of saving, makes the demand
for goods less than the supply”.
6). When a fixed input is combined in production
with a variable input, using a given technology,
increases in the quantity of the variable input will
eventually depress the productivity of the variable
input.
7). The division of labour will spur capital
accumulation which increases labour productivity.
8). Demand for men leads to the production of
men.
9). Governments should establish and maintain
public works programmes and institutions, but only
for services that benefits the society as a whole
and which cannot be provided by the private
sector.
10). Leave the market alone to get the natural
levels of prices, wages, profits and production