The Demographic Transition Concept Suggests That

question 265

Multiple Choice

The demographic transition concept suggests that

• A)effective birth control is the primary prerequisite of DVC income growth.
• B)income growth must first occur before DVC birth rates will decline.
• C)children are economic assets in the IACs but economic liabilities in the DVCs.
• D)the IACs will have higher birth rates than the DVCs.

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Definitions:

Marginal Revenue

The boost in income derived from the sale of an extra unit of a product or service.

Marginal Cost

The additional cost incurred in the production of one extra unit of a good or service.

Marginal Profit

The additional profit gained from producing or selling one more unit of a good or service.

MR < MC

A condition where marginal revenue is less than marginal cost, suggesting that a firm should reduce its output to maximize profit.