Question

1.What determines the Natural Price of an item in Smith?

2What determines if labor is productive or unproductive in Smith?

3Show how the Ricardian steady-state is reached. What is the wage rate, land rental rate, and rate of profit at the steady–state?

4Why does it matter if expenditures are deferred?

If ok,answer these questions in about 400 words

Answer 1

Answer:
1.)
Smith characterized natural price within the Wealth of Nations as “neither more nor less than what is adequate to pay the rent of the land, the compensation of the labor, and the benefits of the stock utilized in raising, planning, and bringing it to market, concurring to their normal rates

2.)
Productive labor, agreeing to Smith, was any work which settled itself in a tangible object. Unproductive labor, was any work where the esteem was consumed as soon as it was made. Smith differentiated the part of laborers in a manufacturing plant (profitable work) with the assignments of a worker (unproductive work).

3.)
Steady State: The falling rate of benefit leads to a slowdown in capital collection. Eventually development stops through and through; an unfaltering state is come to. (Ricardo accepted that as it were the benefit salary of the capitalists is utilized for the amassing of modern capital merchandise. The proprietors are parasites who blow their lease profit on shopper products). Genuine compensation will stagnate at subsistence level, the intrigued rate of capital will remain at and rents will reach its greatest level and profit decreases.

4.)
A deferred expense may be a taken a toll that has as of now been caused, but which has not however been expended. The taken a toll is recorded as a resource until such time as the basic merchandise or administrations are expended; at that point, the fetched is charged to cost. A conceded cost is at first recorded as a resource, so that it shows up on the balance sheet (usually as a current resource, since it'll likely be devoured within one year). In simple words A conceded use (cost) could be a cost to a company that has been paid but as it were impacts on the company’s profit/loss accounts afterward within the monetary year or the following, depending on when it'll be utilized.

(plz give me a thums up...if my answer helped you and if any suggestion plz comment, Yr thums up boost me)