econ434notes6b

econ434notes6b - -on choosing childrens traits o choice of...

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Reverend Thomas Robert Malthus - Population s curve grows exponentially, but then tops out, as space and partners and other resources become scarcer due to growing population – carrying limit – capacity of land to support - Population checks: o Positive checks Famine War Disease Pestilence o preventative checks abstinence birth control abortion thought abortion and birth control immoral - Why do we have children? o Investment goods Kids on farms who are able to work fields…they are machines, means of production, capital o Consumption goods Something had for enjoyment, to play with o sociobiology the greater the probability of survival, the fewer children needed to ensure passing of genes o kids are inferior goods – have fewer as income increases o women’s income – once have kids, are less likely to return to work, at least for a while, and this lowers income – opportunity cost
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Unformatted text preview: -on choosing childrens traits o choice of sex would cause eventual instability in the division of sexes o choice of size would cause everyone to want larger than average children, this would cause average to move up though. Optimal size for adults is actually probably smaller, would consume less and save money Gluts problem too much stuff produced, not enough demand because rich people run out of demand C+S=C+I Ricardo said there could never be gluts problem for the whole economy because scarcity would always exist David Ricardo-Absolute advantage doesnt matter, Comparative advantage does: trade with others, even if you can do both tasks better o A country will export that in which it has abundance, and import those things which are relatively scarce...
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