Question

Why must economic growth rates exceed population growth rates for a country to progress?

Why must economic growth rates exceed population growth rates for a country to progress?

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #2

The rate of economic growth in a country is calculated using GDP/capita i.e. GDP divided by the population of that country. If population growth is too high then it harms the productivity of that country and therefore the standard of living. With higher growth rate of population, GDP per capita decreases, lowering the country's economic progress. Increasing population is necessary for a country to progress but if it outpaces the productivity, then the country is not progressing at all. A country is said to be progressing if it's standard of living is increasing i.e. it's economic growth is increasing. So, a progressing country's economic growth (GDP growth must be Higher than the population growth) must exceed it's population growth in order to increase it's standard of living.

answered by: anonymous
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
In the Solow growth model of an economy with population growth and technological progress, the steady-state...
In the Solow growth model of an economy with population growth and technological progress, the steady-state growth rate in output per worker is equal to: (a) zero (b) the rate of technological progress g. (c) the growth rate of population n plus the rate of technological progress g. (d) the rate of technological progress g minus the growth rate of population n. In the Solow growth model of an economy with population growth and technological progress, the steady-state growth rate...
In your own words, what is economic growth? What are the economic growth rates in the...
In your own words, what is economic growth? What are the economic growth rates in the United States over the last 4 years? Explain the changes in the economic growth rates over that time. Why is economic growth so important?
In the Solow growth model with population growth but no technological progress, if in the steady...
In the Solow growth model with population growth but no technological progress, if in the steady state the marginal product of capital equals 0.10, the depreciation rate equals 0.05, and the rate of population growth equals 0.03, then the capital per worker ratio ____ the Golden Rule level. A) is above B) is below C) is equal to D) will move to
1. For the following, assuming that there is no population growth or technological progress. a) What...
1. For the following, assuming that there is no population growth or technological progress. a) What is the equation that defines the steady-state level of capital per worker? b) How would you determine the steady state level or output per worker (i.e., real GDP per capita) from (a). c) Explain, in words, how an economy that starts with too much capita per worker gets to its steady state. 2. Many demographers predict that the United States will have zero annual...
Question 51 pts The very poorest LDCs have relatively low rates of economic growth and relatively...
Question 51 pts The very poorest LDCs have relatively low rates of economic growth and relatively high rates of population growth. high rates of economic growth and relatively low rates of population growth. low rates of both population growth and economic growth. high rates of both population growth and economic growth. Flag this Question Question 61 pts Capital is rising at 2% per year while the quantity of labor rises at 3% per year. Solow would predict: there will be...
Explain why changes in the level of interest rates will influence economic growth. Analyze the relationship...
Explain why changes in the level of interest rates will influence economic growth. Analyze the relationship between interest rate changes and consumer's ability to stimulate an economy through spending.
In the Solow growth model with population growth, but no technological progress, if in the steady...
In the Solow growth model with population growth, but no technological progress, if in the steady state the marginal product of capital equals 0.10, the depreciation rate equals 0.05, and the rate of population growth equals 0.03, then the capital per worker ratio is below/above/equal to the Golden Rule level. We can optimize per-capita income by increasing/decreasing/leaving alone the savings rate. What governmental policy could achieve this strategy?
1a.Explain why Economic Growth is a necessity for a society. Why is it important to understand...
1a.Explain why Economic Growth is a necessity for a society. Why is it important to understand why we need Economic Growth, but also why too much Growth may be equally detrimental as not enough Growth? 1b.True or False: In the absence of government regulation on employment conditions and wage rates, employers would reduce pay to negligible levels. Provide an explanation for your answer.
Explain the meaning of technology and discuss the effect of technological progress on economic growth. Carefully...
Explain the meaning of technology and discuss the effect of technological progress on economic growth. Carefully explain the effect on real GDP, real GDP per capita and average labour productivity.
Low rates of economic growth are related to financial systems in developing countries. What is this...
Low rates of economic growth are related to financial systems in developing countries. What is this situation called and why might it exist?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT