Author Question: According to Malthus, how do economic growth and population relate to each ... (Read 186 times)

Zoey63294 · **on:** Jun 30, 2018

According to Malthus, how do economic growth and population relate to each other?

Question 2

_______ ensure that resources are allocated to where they are most highly valued.
a. Communist governments
b. Consumers
c. Suppliers
d. Non-governmental organizations
e. Markets

kbennett34 · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

Malthus wrote that population tends to grow as rapidly as means permit, driven forward by sexual desires and other influences. He said that population growth is geometric (exponential in modern terms) in nature. Unfortunately, because of the law of diminishing returns, additional labor combined with a fixed supply of land will increase output at a diminishing rate. Eventually, the marginal product of labor becomes very small, restricting an economy's ability to grow.

Since wages are based on marginal productivity, wages eventually fall to mere subsistence levels. If wages exceed the subsistence level, the population will grow and force wages down. If wages are less than the subsistence level, the population will decline due to starvation or famine, and wages will begin to rise.

Answer to Question 2

e