Business I / The Pre-industrial Economy
Practice question · True or false

In the Malthusian model, technological progress permanently raises income per capita.

Hints
  1. Ask what population does in response to higher income.
  2. The gain is real but temporary under this model.
Show the answer

False

Why

The opposite: technological progress temporarily raises income, which raises population, which pushes income back to subsistence. Progress is converted into people, not prosperity.

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