Describe the Malthusian Cycle
What will be an ideal response?
Malthusian cycle refers to the preindustrial pattern in which increases in aggregate income lead to an expanding population, which in turn reduces income per capita and puts a downward pressure on population. The cycle starts with an increase in GDP above the subsistence level, which in turn fuels population growth, which increases the pressure on existing resources and reduces GDP per capita.
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Compensating wage differentials:
A. refer to the wage premium given to domestic-born workers. B. refer to the wage premium necessary to attract illegal immigrant workers. C. discourage illegal immigrants from entering low-wage labor markets. D. will attract U.S. workers to undesirable jobs if the differential over less unpleasant work is sufficiently high.
When a good ends up undersupplied, we can assume it is a:
A. common resource. B. private good. C. public good. D. transitory good.