PSLecture3 - Problem Set: Lecture 3: Malthus in 1800 and...

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Problem Set: Lecture 3: Malthus in 1800 and Malthus in 2000 [September 29, 2009] Note: Questions marked with a T may be discussed during tutorials. T3.1 “Cerise looks at the conditions for a one variable input model, with labour as the variable factor and land as the fixed factor, and expresses the opinion that she does not understand the difference between APP [average productivity] and MPP [marginal productivity]. Cerise presents the position that both of these terms represent productivity measures, therefore why two different terms?” T3.2 “Clancy indicates that the law of diminishing marginal productivity [returns] starts at the labour input where average physical product is at a maximum – that is at the labour input where a ray from the origin is tangent to the total physical product curve.” 3.3 “Catherine states that, when the average physical product curve is increasing, the marginal physical product curve must also be increasing.” T3.4 “Cecil argues that if a labour-surplus low-income country, like India, were to have ‘disguised unemployment’ in agriculture [i.e. the marginal physical product of labour was zero], then the transfer of disguised unemployed labour to the industrial sector would raise the average labour productivity in agriculture.” T3.5 “Cindy takes the position that Malthus was incorrect. There was little starvation during the
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PSLecture3 - Problem Set: Lecture 3: Malthus in 1800 and...

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