ECON 2350 Chapter Notes - Chapter 6: Opportunity Cost, Competitive Equilibrium, Capital Accumulation
5 Mar 2018
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Econ 2350 tutorial 6 notes how useful is the malthusian model of economic growth? and. Introduction: given what was known in 1798, when malthus wrote his essay, the malthusian model could be judged to be quite successful, our first economic growth fact, discussed at the beginning, was that before the. Why was malthus wrong: first, he did not allow for the effect of increases in the capital stock on production. In contrast to land, which is limited in supply, there is no limit to the size of the capital stock, and having more capital implies that there is more productive capacity to produce additional capital. In terms of family decisions, the opportunity cost of raising a large family becomes large in the face of high market wages, and more time is spent working in the market rather than raising children at home.
