Economics · Economy

According to David Ricardo's classical economic framework (Iron Law of Wages), what is the long-run impact of rapid population growth on labor wages?

Verified Solution4 OptionsUpdated: October 2026👁️1 View

1Wages are determined purely by direct central statutory price control laws.
2Population growth has zero structural relationship with wage equilibrium.
3Increased labor supply relative to food production pushes market wages down toward subsistence levels.✓
4Increased population growth causes wages to permanently rise above comfortable levels.

Correct answer

Increased labor supply relative to food production pushes market wages down toward subsistence levels.

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