What are the key relationship and assumption of the malthusian model of economics growth? How would you use the model to show what determines standard of living?
The key relationship in the Malthusian model of economic growth is the relationship between population growth and resource availability. The model is based on the assumptions that population tends to grow at an exponential rate, while resources grow at a linear rate. This leads to the argument that as population continues to grow, the amount of resources available per person will decrease, leading to a decrease in living standards.
To determine the standard of living using the Malthusian model, one can assess the relationship between population growth and resource availability. If resources are scarce and population continues to grow rapidly, this would likely result in a lower standard of living as individuals have access to fewer resources. On the other hand, if population growth is controlled or resources are able to grow at a faster rate, living standards would be expected to improve.
In summary, the Malthusian model can be used to show what determines the standard of living by examining the balance between population growth and resource availability. By analyzing these factors, one can predict how changes in population growth or resource availability may impact living standards in a society.