Consider the following statements regarding the Ricardian Theory of Development: Statement 1: As population growth necessitates the cultivation of inferior land, the resulting diminishing returns in agriculture inevitably cause land rents to rise and profits to fall. Statement 2: The continuous decline in profits leads to a 'Stationary State' wherein investment eventually drops to zero, rendering economic development self-limiting without technological change or free trade. Which of the following options is correct?

Question

Economics · Ricardian Theory of Development

Verified Solution4 OptionsUpdated: October 2026👁️1 View

Share:

Correct answer

Both statements are true.

Save this question and verified answer as a clean study sheet with live clickable link.

👥

Challenge your peer aspirants on WhatsApp or Telegram to solve this question!

Online Test Series

Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.

Chapter Practice

Want more practice questions on Ricardian Theory of Development?

Solve complete topic-wise tests with detailed solutions on GkGet.

Recommended practice questions in Economics · Ricardian Theory of Development

Which movement aimed to promote Khadi, a hand-spun and handwoven cloth native to India?

Who were prominent leaders associated with the initial phase of the Telangana Rebellion (1946-1951) against the Nizam's rule and feudal landlords?

What was the immediate trigger for the Revolt of 1857?

Answer 1

Both statements are true.

Answer 2

Statement 1 is false, but Statement 2 is true.

Answer 3

Statement 1 is true, but Statement 2 is false.

Answer 4

Both statements are false.

Related Practice Questions