Thomas Malthus' Prediction of Mass Starvation Resulting from Diminishing Marginal

question 42

Multiple Choice

Thomas Malthus' prediction of mass starvation resulting from diminishing marginal returns has not been fulfilled because

• A) the law of diminishing marginal returns did not hold in this case.
• B) Malthus ignored other factors like technological change.
• C) relative to Malthus' day, larger percentage of today's labor works in the agricultural sector.
• D) All of the above.

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Definitions:

X-Inefficiency

The difference between actual output and the maximum possible output that could be achieved with the same input of resources, due to inefficiencies within a firm.

Dynamic Change

The process of constant, sometimes unpredictable change within systems or environments, affecting economic, social, or technological aspects over time.

Usury Laws

Legislation that limits the amount of interest that can be charged on loans.

Low-Income Borrowers

Individuals or households with lower income who may face greater challenges or higher costs when trying to secure loans.