History of foundation of Nobel prize? Key words

Illustrate your understandings about Ricardo`s Stationary State notion
Key words: accumulation and investment of capital, falling profit rates, rent.
The tendency of the rate of profit to fall (TRPF) is a hypothesis in the crisis theory of political economy, according to which the rate of profit—the ratio of the profit to the amount of invested capital—decreases over time. This hypothesis gained additional prominence from its discussion by Karl Marx in Chapter 13 of Capital, Volume III, but economists as diverse as Adam Smith John Stuart Mill, David Ricardo and Stanley Jevons referred explicitly to the TRPF as an empirical phenomenon that demanded further theoretical explanation, although they differed on the reasons why the TRPF should necessarily occur.
David Hume and The specie-flow mechanism
Key words: domestic prices, gold inflow, adjustment mechanism
The price–specie flow mechanism is a model developed by Scottish economist David Hume (1711–1776) to illustrate how trade imbalances can self-correct and adjust under the gold standard. Hume expounded his argument in Of the Balance of Trade, which he wrote to counter the Mercantilist idea that a nation should strive for a positive balance of trade (i.e., greater exports than imports). In short, the "increase in domestic prices due to the gold inflow would discourage exports and encourage imports, thus automatically limiting the amount by which exports would exceed imports The ‘specie-flow mechanism’ is an analytic version of automatic, or market, adjustment of the balance of international payments. In competitive markets with specie-standard institutions, behaviour will lead to national price levels and income flows consistent with equilibrium in the international accounts, commonly interpreted in this context to mean zero trade balance.


Labor theory of value
Key words: relative value of a good, capital accumulation, long run price
The labor theory of value (LTV) is a theory of value that argues that the economic value of a good or service is determined by the total amount of "socially necessary labor" required to produce it. The LTV is usually associated with Marxian economics, although it also appears in the theories of earlier classical economics such as Adam Smith and David Ricardo and later also in anarchist economics. Smith saw the price of a commodity in terms of the labor that the purchaser must expend to buy it, which embodies the concept of how much labor a commodity, a tool for example, can save the purchaser. The LTV is central to Marxist theory, which holds that the working class is exploited under capitalism, and dissociates price and value. However, Marx did not refer to his own theory of value as a "labor theory of value"