Assignment: Ricardo was primarily interested in the theory of the distribution of wealth/ income in an economy. In his On the Principles of Political Economy and Taxation (1817) he puts forward a theory of how an economy evolves, and what the consequences of this will be for the distribution of wealth/income. Specifically, he discusses the relations between landowners (who earn rent and profits on agricultural produce), laborers (who earn wages) and the manufacturers/capitalists/entrepreneurs (who earn profits on capital), and how wealth accruing to each of these groups will change over time. Describe Ricardo’s theory of this process. (Hint: begin with the explanation of how rent on land arises, and end with the explanation of why the rate of profit on capital inevitably falls over time until it is so low that no new investment in capital will occur.)