According to the Kremerian Model, Large Populations Improve Living Standards

question 26

Multiple Choice

According to the Kremerian model, large populations improve living standards because:

• A) crowded conditions put more pressure on people to work hard.
• B) there are more people who can make discoveries and contribute to innovation.
• C) more people have the opportunity for leisure and recreation.
• D) most people prefer to live with many other people.

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Definitions:

Consumer's Preferences

The subjective tastes and desires that guide consumer behavior in choosing among various goods and services.

Prices

The price projected, required, or paid in return for a particular item.

Marginal Rate

The rate at which one quantity changes with respect to a change in another quantity, often used in the context of tax or interest.

Substitution

In economics, the process by which a good or service is replaced with another due to changes in price, preferences, or availability.