[Question to Hand-In] Consider a country where output is produced using land and labour according to a neoclassical production function. Land is in fixed supply. Make the Malthusian assumption that population growth increases with consump- tion per person (equal to income per person). Explain why steps to reduce the population growth rate (all else equal) would lead to a rise in income and consump- tion per person. Assuming that rents are equal to the marginal product of land, explain whether landowners would be in favour of these steps to reduce population growth.
[Question to Hand-In] Consider a country where output is produced using land and labour according to a neoclassical production function. Land is in fixed supply. Make the Malthusian assumption that population growth increases with consump- tion per person (equal to income per person). Explain why steps to reduce the population growth rate (all else equal) would lead to a rise in income and consump- tion per person. Assuming that rents are equal to the marginal product of land, explain whether landowners would be in favour of these steps to reduce population growth.
Chapter1: Making Economics Decisions
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![[Question to Hand-In] Consider a country where output is produced using land
and labour according to a neoclassical production function. Land is in fixed supply.
Make the Malthusian assumption that population growth increases with consump-
tion per person (equal to income per person). Explain why steps to reduce the
population growth rate (all else equal) would lead to a rise in income and consump-
tion per person. Assuming that rents are equal to the marginal product of land,
explain whether landowners would be in favour of these steps to reduce population
growth.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd2d0674f-6f7a-4b8b-bdb2-6aa02bac81c1%2F5cc5c6e9-38cd-4a56-b5e0-40777ef20613%2Fmqffk87_processed.jpeg&w=3840&q=75)
Transcribed Image Text:[Question to Hand-In] Consider a country where output is produced using land
and labour according to a neoclassical production function. Land is in fixed supply.
Make the Malthusian assumption that population growth increases with consump-
tion per person (equal to income per person). Explain why steps to reduce the
population growth rate (all else equal) would lead to a rise in income and consump-
tion per person. Assuming that rents are equal to the marginal product of land,
explain whether landowners would be in favour of these steps to reduce population
growth.
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