Business I / The Pre-industrial Economy
Practice question · Put in order

Order the Malthusian cycle after a positive agricultural shock.

Hints
  1. The improvement raises income before anything else responds.
  2. Population growth is what eventually erases the gain.
Show the answer
  1. A new crop variety increases yields
  2. Income per capita rises above subsistence
  3. Better nutrition means more surviving children
  4. Population grows, land per person falls
  5. Income per capita falls back to subsistence
Why

Innovation → income spike → population response → reversion. The cycle is the trap, no step is wrong, but the loop is inescapable without sustained productivity acceleration.

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