Because the Average Annual Population Growth Is Higher in Developing

question 42

Multiple Choice

Because the average annual population growth is higher in developing countries than in industrial nations,

• A) economic growth is higher in developing countries.
• B) the investment in education is higher in developing countries.
• C) the total size of the labor force is higher in industrial countries.
• D) productivity is higher in developing countries.
• E) the growth in the labor supply is lower in industrial countries.

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Definitions:

Market Failure

A situation in which the allocation of goods and services by a market is not efficient, often leading to a net social welfare loss.

Marginal Benefit

The increased happiness or advantage derived from the consumption of one more unit of a good or service.

Marginal Cost

The cost of producing one more unit of a good or service, often key to determining the optimal level of production.

Competitive Market

A market structure characterized by a large number of buyers and sellers, free entry and exit, and products that are similar enough to be considered substitutes.