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Here is the brief introduction of the model of the Economic Theory of Malthus: at the very first let us suppose an economy with a given area of land; if the labor force keeps growing in this economy, the area of the spare land appropriated to the labor force will surely decrease by that time. In this processing, the Law of Diminishing Marginal Returns begins to take its effect(David N. Weil, 2005, p547). The continuing increase of the ratio of labor against land leads the margin output of labor to go down accompanied with a decrease in the productivity. If this process arrives to the extreme circumstance, as a result, the economy can barely provide the products which are supposed to sustain the people’s basic survival owing to the excessive labor.（Weil, 2005 and Williamson, 2005）

The model of the Economic Theory of Malthus does not give a determinative formula; the following formula will help to its understanding.
This theory applies to the economic model as below:
The total income is the function of all the production factors; Production equation is Y= F(K,L). Y represents the output; K stands for the capital and L means the labor force. is the revenue per capital.( Dornbusch, Fischer and Si Tanzi 2007)
(a) For each of the following, illustrate what happens to a country’s population size and per capita income in the short run and in the long run. Explain your results.

i. Scientists discover a new strain of wheat that can produce twice as much grain per acre.

Population will expand, the revenue per capita declines in the short term while increases in the long run..
The output of the wheat increases by 200%, in that case, the income per capita in the short term - (which is the result of the total income divided by the total population)--will rise because the number of the total population can’t increase sharply in the short run. While in the perspective of a long term, more food will contribute to the growth of population, and the population size will expand at the speed of a somewhat geometric series, which is always higher than the growth rate of the food. Therefore, the income per capita in the long term will decrease. If the expansion of the population reaches at the extreme point at which people can only sustain a mere survival, it will come to a halt.

ii. A war kills half of the population

Population declines sharply, revenue per capita in the short ascends but declines in the long run.
Suppose that half of the population is killed by a war, then the population of the whole nation will descend by half while the total production will remain the same in the short term, resulting, in the short-term ,the income per capita’s increase. Conditions in the long term just functions in the same way as what we have mentioned above in Example 1. “More foods and few people” makes the population grow by leaps and bounds while the income per capita in the long term declines. Economy finally may fall into a poverty trap.

iii. A volcanic eruption kills half the people and destroys half the land

Population declines sharply, the revenue keeps steady in the short term but declines in the long run.
Suppose half of the population is killed and half of the total lands are destroyed by the 本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。