Rapid Population Growth Can Be an Obstacle to Economic Development

question 147

Multiple Choice

Rapid population growth can be an obstacle to economic development

• A) because it can translate a relatively large increase in real output into a small increase in real output per capita.
• B) because more investment will be required to simply maintain the quantity of capital goods per person.
• C) because it may lead to the overutilization and therefore ecological degradation of farmland.
• D) for all of these reasons.

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Definitions:

Break-even

The point at which total costs and total revenues are equal, meaning that there is no net loss or gain from the business activities.

Marginal Cost

The expense associated with the production of an extra single unit of a good or service.

Perfectly Competitive

A market structure characterized by many buyers and sellers, free entry and exit, homogeneous products, and perfect information among consumers and producers.

Perfect Competitor

A theoretical market structure characterized by many buyers and sellers, homogeneous products, and no barriers to entry or exit, leading to perfect information and no control over prices.