Civil service quizzes

  The Ricardian theory of rent is an economic theory proposed by David Ricardo in the early 19th century. According to Ricardo, rent is the return to the ownership of land and is determined by the difference in the productivity of land. The theory states that land has different fertility levels and that the most fertile land is used first for agriculture. As the population grows and demand for food increases, less fertile land is brought into cultivation. The rent for this less fertile land is higher because it is less productive than the most fertile land. The theory suggests that the value of land is determined by its fertility and location. The most fertile land will command the highest rent, while less fertile land will command a lower rent. Additionally, land located in an area of high demand will command a higher rent than land located in an area of low demand. The theory also states that as the population grows, the demand for food will increase, which will drive up the price of