How do population growth and economic growth impact global poverty?
What will be an ideal response?
Poverty has to do with how much output individuals have access to or the standard of living for a country. Economic growth, which is an increase in output or real GDP, is important in reducing poverty, but population growth also plays a role. If GDP increases more rapidly than the population, then the value of output divided by the population (per capita GDP) rises. If GDP increases, but at a slower rate than the population, there is less output available per person and per capita GDP falls. This is a common problem in poor countries where the population growth rates are typically much higher than in rich countries.
You might also like to view...
Here are three possible definitions of "Compensating Variation": I. the amount a person would be willing to pay to avoid a price increase. II. the amount of additional income needed to allow a person to restore his or her utility back to its initial level after it has been reduced by a price increase. III. the amount of income that a person who experienced a price increase would be willing to pay
to see the price return to its earlier level. Which of these definitions is (are) correct? a. Only I b. I and II c. II and III d. Only III
Total surplus is represented by the area
a. under the demand curve and above the price. b. above the supply curve and up to the price. c. under the supply curve and up to the price. d. between the demand and supply curves up to the point of equilibrium.