• David Ricardo was a classical economist who developed several key theories that still influence economics today.

  • Ricardo was a successful investor and MP who started writing about economics after he retired young from his fortune.
  • Ricardo is best known for his theories of comparative advantage, economic rent, and the labor theory of value.
  • Ricardo’s well-known theory of comparative advantage suggests that countries can gain an advantage in international trade if they focus on producing goods at the lowest opportunity cost compared to other countries.
  • Ricardo suggested that the value of a commodity is determined by the number of labor hours spent on its production.