A reduction in the rate of population growth

Question

Quizplus · Accepted Answer

A reduction in the rate of population growth may or may not cause an increase in economic growth, depending on various factors such as the availability of resources, the level of technology, the efficiency of labor, and the quality of institutions. In some cases, a smaller population may lead to a larger per capita income by reducing the pressure on natural resources, increasing the savings rate, improving the education and health of workers, and enhancing the innovation and entrepreneurship in the economy. In other cases, a slower population growth may shrink the market size, limit the division of labor, hinder economies of scale, and reduce the scope for specialization and trade, thereby lowering the overall productivity and welfare levels. Therefore, the relationship between population growth and economic growth is complex and context-dependent, and cannot be generalized as always positive or negative.

A Reduction in the Rate of Population Growth