Question

Production function:

a) Explain Malthus's prediction about diminishing marginal productivity of labor and its impact on hunger and starvation.
b) How did later economic thought and developments relate to Malthus's predictions?

Answer 1

Malthus predicted diminishing marginal productivity of labor would lead to hunger and starvation. However, later economic thought and developments have disproven his predictions.

Step-by-step explanation:

Thomas Malthus, an economist in the 18th century, predicted that the productivity of labor would diminish over time due to the limited resources available, leading to hunger and starvation. He argued that as the population increased, the amount of food produced would be insufficient to meet the growing demand, resulting in a Malthusian trap where hunger becomes the primary check on population growth.

However, later economic thought and developments have disproven Malthus's predictions. The use of new technologies and increased capital investment in agriculture has led to significant increases in food production, even as the population continues to grow. This has allowed societies to escape the Malthusian trap and improve living conditions.