ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -According to Malthus, population growth reduces material welfare due to diminishing returns to labor on a fixed supply of land. On the other hand the higher the level of material welfare the higher the population growth rate will be.

Detailed explanation-2: -Land is a strictly fixed factor of production. Obviously, the quantity of land in existence will always remain the same and no human power can alter that. This means that no amount of change in demand can change the supply of land.

Detailed explanation-3: -The first factor of production is land, but this includes any natural resource used to produce goods and services. This includes not just land, but anything that comes from the land. Some common land or natural resources are water, oil, copper, natural gas, coal, and forests.

Detailed explanation-4: -Fixed factors are those that do not change as output is increased or decreased, and typically include premises such as offices and factories, and capital equipment such as machinery and computer systems.

Detailed explanation-5: -Major Elements of the Malthusian Theory The Malthusian theory explained that the population grows in a geometrical fashion. The population would double in 25 years at this rate. However, the food supply grows in an arithmetic progression. Food supply increases at a slower rate than the population.