Question

Which one of the following is not an assumption of the Ricardian theory?
निम्नलिखित में से कौन रिकार्डियन सिद्धांत की धारणा नहीं है?
Select one:
O A. Fixity of land
भूमि की शुद्धता
OB. Operation of the law of diminishing returns
कम रिटर्न के कानून का संचालन
Da. Perfect competition
योग्य प्रतिदवंदी
D. Rising real wages
वास्तविक मजदूरी बढ़ रही है​

Answer 1

Operation of the law of diminishing returns

Answer 2

Option D is the correct answer.

Rising real wages is not an assumption of the Ricardian theory.

It is a theory of rent based on the following main assumptions;

1. Fixity of land - Amount of land is already given i.e. the supply of land is fixed.
2. Operation of the law of diminishing returns - The land is of different types some portions are fertile others are not very fertile. The produce from less fertile lands diminishes even though cost of production is same.
3. Perfect competition - The owners of the land are willing to give thir land for a rent instead of leaving it idle.
4. Land does not have supply price.