The Demographic Transition View of Population and Growth in DVCs

question 198

Multiple Choice

The demographic transition view of population and growth in DVCs is that

• A)the most important factor affecting population growth in DVCs is demographic changes among the elderly.
• B)slower population growth is neither desirable nor productive for DVCs given the state of the economies in these nations.
• C)reduced birth rates must come first in DVCs, and then higher per capita incomes will follow.
• D)higher per capita incomes must come first in DVCs, and then reduced birth rates will follow.

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Definitions:

Fully Rational

Describes an economic theory assumption that individuals always make decisions that provide them with the highest amount of personal satisfaction or utility, based on full knowledge and a consistent evaluation of available information.

Behavioral Biases

Psychological tendencies that cause individuals to act in predictably irrational ways, often impacting financial and investment decisions.

Irrational Investors

Investors who make financial decisions based on emotions or biases rather than on rational evaluation.

Arbitragers

Individuals or entities that attempt to profit from price differences of the same or similar financial instruments, on different markets or in different forms.