ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Countries with high rates of economic growth tend to have a labor force that is more productive. This is because economic growth is positively correlated or linked to labor force productivity driven by technological progress, capital investment, and human capital development.

Detailed explanation-2: -Rapid population growth makes it more difficult for low-income and lower-middle-income countries to afford the increase in public expenditures on a per capita basis that is needed to eradicate poverty, end hunger and malnutrition, and ensure universal access to health care, education and other essential services.

Detailed explanation-3: -Economic growth is measured by changes in a country’s Gross Domestic Product (GDP) which can be decomposed into its population and economic elements by writing it as population times per capita GDP. Expressed as percentage changes, economic growth is equal to population growth plus growth in per capita GDP.

Detailed explanation-4: -A Change in Population Growth The rate of population growth sets the long-run growth rate of the economy. If the population growth rate n rises, the capital-widening term nk rises. Consequently the steady-state capital/labor ratio k falls. Hence the steady-state output per capita falls.