What role does population growth play in economic development?
What will be an ideal response?
Rapid population growth creates a high dependency ratio and requires substantial investment of resources in health, education, and training. These resources could alternatively have been invested in physical capital and infrastructure to promote the growth of GDP.
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Interest rates typically rise when
A) bond prices increase. B) bond prices decrease. C) the coupon payout on existing bonds increase. D) the maturity date on existing bonds extends farther into the future.
When a country imports more than it exports, it has a:
A. trade deficit. B. trade surplus. C. zero trade balance. D. policy which forbids exportation.
One reason stagflation is difficult to recover from is because:
A. less output requires less inputs to be hired. B. prices tend to adjust more quickly downward than upward. C. wages are sticky downward. D. input prices increase with output prices.
If the market for used computers has only lemons (low-quality computers) then the market:
A. is an example of a thick market. B. suffers from an adverse selection problem. C. is a type of monopoly. D. must be monopolistically competitive.