Statement I.Since less developed countries have very low per capita GDPs,it is hard to build capital by consuming less.
Statement II.The populations in less developed nations are growing more rapidly than those of the industrial nations.

Question

Quizplus · Accepted Answer

Both statements are true. Statement I accurately describes the challenge less developed countries face in accumulating capital due to their low per capita GDPs, making it difficult to save and invest from already minimal income levels. Statement II is true as well, as less developed nations generally have higher population growth rates compared to industrialized nations, which is a widely observed demographic trend.