ECON-2120 Study Guide - Midterm Guide: Efficiency Wage, Current Population Survey (Us), Marginal Product
22 Sep 2016
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3 distinct economic growth periods: pre-modern times: up to 1800, industrial revolution: 1800-1820, post-industrial revolution: 1820-present. Thomas malthus, writing in 1798, argued that humankind was destined to live at the subsistence level the minimum level of income per person necessary to survive. According to the malthusian cycle, any increase in income per capita above the subsistence level would lead to higher fertility rates. Higher fertility rates fuel higher population growth which in turn would drive income per capita back down to the subsistence level. Without any technological advances, pre-modern times were stuck in the. Malthusian cycle of little to no sustained growth in income per capita. Two trends led britain and then other countries to break out of the. First, the into of new machines and methods of production (industrial. Revolution) created the technological progress necessary for sustained growth. The industrial revolution started in production then moved on to transportation.
