These Two Basic Assumptions of David Ricardo Have Played an Important

question 25

Multiple Choice

These two basic assumptions of David Ricardo have played an important role in two-sector models:

• A) rents and taxation.
• B) buyers and sellers.
• C) diminishing returns and labor surplus.
• D) constant returns to scale and economic efficiency.

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Definitions:

Previous Round

Refers to the most recent stage of financing or investment a company underwent before the current one.

Terminal Value

The estimated value of a business or project at the end of a specific period, taking into account future cash flows in perpetuity.

Net Income

The total profit of a company after all expenses and taxes have been subtracted from total revenue.

P/E Ratio

The Price-to-Earnings Ratio is a financial metric comparing a company's share price to its earnings per share, indicating the value that investors place on a company's earning ability.