7. Population growth and economic growth

Consider the economies of Tralfamadore and Sporon, both of which produce agricultural products using only land and labour. The following tables show the supply of land, population size, and real GDP for these two economies from 2020 to 2023.

Complete the last column of the following two tables by calculating real GDP per capita for the two economies.

Tralfamadore

Year	Land	Population	Real GDP	Real GDP per Capita
(Hectares)	(Dollars)	(Dollars)
2020	20,000	500	4,500
2021	20,000	1,000	10,000
2022	20,000	1,500	16,500
2023	20,000	2,000	24,000

Sporon

Year	Land	Population	Real GDP	Real GDP per Capita
(Hectares)	(Dollars)	(Dollars)
2020	20,000	1,000	15,000
2021	20,000	2,000	28,000
2022	20,000	3,000	36,000
2023	20,000	4,000	40,000

Rapid population growth tends to threaten economic growth in economies with land-labour ratios.

Which of the following is a correct description of the effect of population growth on economic growth in Tralfamadore from 2020 to 2023?

Real GDP per capita rose from 2020 to 2023 as population increased.

Real GDP per capita fell initially but eventually rose as population continued to expand.

Real GDP per capita rose initially but eventually fell as population continued to expand.

Real GDP per capita fell from 2020 to 2023 as population increased.

The English economist Thomas Malthus made an incorrect prediction regarding long-run living standards. His error can largely be traced to his not recognizing the importance of .