One of Ricardo's visions of the future long-term market economy was the theory of comparative advantage. He introduced this theory in his book titled “Principles of Political Economy and Taxation”. This theory argued that the benefit of international trade could be promoted when countries represented considerable authority on the product market in which they had an absolute preferential point of view and a favorable relative position compared to other countries with a specific end goal. This theory proposed that international trade would bring profit to all trading partners and provided a formal justification for the organized trade system. This dishonors the mercantilist perspective of exchange, which sees the collection of tariff surpluses as a way to profit from the rate. “To transfer Ricardo's ideas to data, a key empirical challenge must be overcome. Suppose, as Ricardo's theory of comparative advantage predicts, that different economic activities are based on their differences in productivity." Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essay Subsequently, Ricardo supported the theory of wages. He supported this theory by believing that wages depended on relative measures of capital available for hiring specialists and the extent of the drive to work. Wages increase only with an increase in capital or a decrease in the number of specialists. Ricardo indicated that the wage seeks an adequate level only to allow workers to survive and propagate their race, without either increase or reduction. As Ricardo argued, "profits depend on high or low wages, wages on the price of first necessities, and the price of first necessities depends mainly on the price of food." Furthermore, Malthus was one of the economists who focused on everything related to populations. He explained his thoughts on population in his book titled “An Essay on the Principle of Population”. According to Malthus, the development of a population is the result of the entire process of economic improvement, but the insufficient proportional increase in wealth cannot favor the expansion of the population. An insignificant increase in population cannot provide an improvement in financial extension. Population development only allows progress if it creates an expanding demand for success. The rate of capital accumulation would be influenced by the interest in labor. Malthus does not suggest the need to claim reserve funds and speculation for economic development, he however proposes an ideal level of propensity to save. In this sense, it had the image of a system that pushed the growth of economic development through the use, speculation and investment funds extending together. He characterized the issue of advancement by clarifying the distinction between potential gross national product and actual gross national product. He is more concerned with short-term changes in wealth than with placing faith in any long-term assumptions. However, the fundamental issue is to reach an abnormal state of potential gross product. He said that four important components such as land, labor, capital, association will affect the magnitude of the potential gross national product. Please note: this is just an example. Get a custom paper from our expert writers now. Get a custom essayIn short, he tried to underline that these four components, when consolidated in the right measure, stimulate creation in two notable areas such as.