The classical theory of rent is associated with the name of well known British economists “David Ricardo”. Labor is one of the four factors of production. 17] Inflation
form of wages, for capital as interest, and for entrepreneurship profit is the
All rents are measured from it upwards. It is also known as Demand and Supply theory of wages. According to Adam Smith, the demand for labour and rate of wages depend on the size of the wages fund. 33.1—develops into a market and Azadnagar in ‘B’ into a railway junction, and produce has to be sent to those two flourishing localities for their final disposal.