Unit 2 - Technology, Population and Growth

Question 1

What is an isocost line?

Answer 1

A line that represents all combinations that cost a given total amount.

Question 2

What is the Malthusian trap?

Answer 2

The Malthusian Trap, developed by Thomas Robert Malthus is described as a trap where as soon as living conditions improved a little, the population of Britain would persevere in having more children which only meant that the living conditions would drop again. This carries on to therefore be a / Malthus’ vicious cycle theory.

Question 3

What is Economic rent?

Answer 3

A payment or other benefit received above and beyond what the individual would have received in his or her next best alternative (or reservation option). (if an action brings greater net benefits than the next best alternative, it yields an economic rent it will incite you to do it)

Question 4

Define an Equilibrium.

Answer 4

A model outcome that is self-perpetuating. In this case, something of interest does not change unless an outside force is introduced that alters the model’s description of the situation.