Consider the economies of Gobbledigook and Blahnik, both of which produce agricultural products using only land and labor. The following tables show the supply of land, population size, and real GDP for these two economies from 2011 to 2014. Calculate real GDP per capita for the two economies, and complete the last column of the following two tables. Gobbledigook Year Land Population Real GDP Real GDP per Capita (Acres) 2011 20,000 500 $3,500 $ 2012 20,000 1,000 $8,000 $ 2013 20,000 1,500 $13,500 $ 2014 20,000 2,000 $20,000 $ Blahnik Year Land Population Real GDP Real GDP per Capita (Acres) 2011 20,000 1,000 $11,000 $ 2012 20,000 2,000 $20,000 $ 2013 20,000 3,000 $27,000 $ 2014 20,000 4,000 $32,000 $ Rapid population growth tends to threaten economic growth in economies with land-to-labor ratios. Which of the following is a correct description of the effect of population growth on economic growth in Blahnik from 2011 to 2014? A) Real GDP per capita fell initially but eventually rose as population continued to expand.
B) Real GDP per capita fell from 2011 to 2014 as population increased.
C) Real GDP per capita rose from 2011 to 2014 as population increased.
D) Real GDP per capita rose initially but eventually fell as population continued to expand.
The English economist Thomas Malthus made an incorrect prediction regarding long-run living standards. His error can largely be traced to the fact that the importance of natural resources as a factor in productivity (Overestimated/Underestimated)** the impact of technological change on economic growth.