If population growth is taking place,

Question

Quizplus · Accepted Answer

All of the statements are true when population growth is taking place.

A) If the population is growing, the community indifference curves will shift, making it difficult to compare the impact of growth and trade.

B) If increasing returns to scale are not present, population growth must be accompanied by increased capital stock or changes in technology if social welfare is to increase.

C) The production-possibilities frontier will shift out relatively more for the labor-intensive good than for the capital-intensive good because the population growth will increase the labor force, making labor-intensive goods relatively less expensive.

If Population Growth Is Taking Place