Question

Based on the Malthusian Theory of Population, discuss TWO economic benefits of rising population, and TWO economic harms of rising population, for an economy.

- Discussion must be elaborate and well-written to earn full points -- minimum of 1 page (double-spaced) expected.

Answer 1

Malthusian theory states that there is fixed quantity of land and an increase in population will automatically reduce the amount of resources that each individual can consume.He also stated that world's population is increasing at geometric progression and food supply is increasing at arithmetic progression so the rate of population growth is faster than food supply which create shortage of food resources for the increasing population.

Economic benefits of increasing population :

1.More people means a country can produce and consume more goods and services which ultimately leads to economic growth. But employment opportunities should grow at the same rate at which labour force is increasingly. This is possible when prp8have access to basic education and training  

2.A large population may help to overcome possible diminishing returns to this generation's human capital in the production of next generation's human capital. It is because greater population growth results in more specialisation and a large market that ultimately raise return to human capital and knowledge.

Economic harm of increasing population :

According to Malthus, population growth Is detrimental to economic development due to following reasons :

1.Higher economic growth and population stimulate early marriages which results on high birth rate..

Example: population of Africa is expected to multiply by a factor of 9.8 between 1950 to 2050.

2.Econimic development reduces mortality rates which also results on increase in population. It reduces the number of deaths in an economy. This is because due to economic development, medical facilities will be improved and better food supply results in low death rate.

It is true that population growth creates problem in the short run like poverty, unemployment but it leads to development through advancement in technology in the long run.