Which economic idea justifies low wages by positing that population growth will outpace resources?

• A. Supply and Demand
• B. Surplus Value
• C. Malthusian Theory
• D. Keynesian Economics

Answer: (C)

The correct choice highlighting the justification for low wages through the idea that population growth will outstrip resources is indeed Malthusian Theory. This theory, proposed by the Reverend Thomas Robert Malthus in the late 18th century, posits that while populations tend to grow exponentially, resources, particularly food supply, grow arithmetically. Therefore, as the population increases, the available resources will become insufficient to sustain everyone, resulting in poverty and low wages as more individuals compete for limited jobs and resources.

Malthusian Theory essentially suggests that the natural checks on population growth, such as famine, disease, and war, will serve to balance the population to fit within the means of available resources. This perspective provides a framework for understanding why wages might remain low in contexts where there is significant population pressure, as a surplus of labor can suppress wage growth.

The other economic theories mentioned do not focus specifically on the relationship between population growth and resource limitations. Supply and Demand relates to market pricing dynamics but does not inherently connect to Malthus's ideas. Surplus Value is associated with Karl Marx's critique of capitalism, discussing how labor value is exploited, while Keynesian Economics focuses on government intervention in the economy to manage demand and does not tie directly