According to Malthus, how do economic growth and population relate to each other?
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.
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To test the gravity equation of trade, a regression model was calculated for two nations, the United States and Canada, testing the correlation among:
a. regional trade, size of GDP, and distance for states and provinces. b. intra-industry trade, size of GDP, and size of states and provinces. c. bilateral trade and ratio of GDP for states and provinces. d. bilateral trade, size of GDP, and distance for states and provinces.
Are comic books money?
A. Yes, because the way economists define money, basically everything is money. B. Yes, because comic books can easily be traded for goods and services. C. No, because money cannot be something with intrinsic value, which comic books have. D. No, because selling a comic book takes work and provides an uncertain amount of funds.