Classical economists predicted that population growth would eventually reduce economic growth because they believed:
A)in the law of diminishing marginal productivity.
B)in the law of increasing marginal productivity.
C)that production involved decreasing returns to scale.
D)that production involved increasing returns to scale.

Question

Quizplus · Accepted Answer

Classical economists, like Thomas Malthus, believed in the law of diminishing marginal productivity, which posits that adding more of one factor of production, while holding others constant, will at some point yield lower per-unit returns. This principle led them to predict that unchecked population growth would strain resources, leading to lower per capita productivity and economic growth.

Classical Economists Predicted That Population Growth Would Eventually Reduce Economic