The faster the population grows, the more labor there will be to produce goods and services, so faster population growth is good for economic growth. Why may this not be true according to the Solow model?

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MCQs on major theories of economic development, placing them in a historical context.

The faster the population grows, the more labor there will be to produce goods and services, so faster population growth is good for economic growth. Why may this not be true according to the Solow model?

What matters is per capita GDP; an increase in GDP may not translate to higher per capita GDP. / In the Solow model, what matters is capital stock per worker. If the additional population is not equipped with additional capital, output per worker will fall even though GDP is increasing.
What matters is per capita GDP; an increase in GDP may not translate to higher per capita GDP.
There will be too many people to feed and this may not be good.
In the Solow model, what matters is capital stock per worker. If the additional population is not equipped with additional capital, output per worker will fall even though GDP is increasing.

The faster the population grows, the more labor there will be to produce goods and services, so faster population growth is good for economic growth. Why may this not be true according to the Solow model?

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The faster the population grows, the more labor there will be to produce goods and services, so faster population growth is good for economic growth. Why may this not be true according to the Solow model?

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All trademarks, logos and brand names are the property of their respective owners. All company, product and service names used in this website are for identification purposes only. Use of these names, trademarks and brands does not imply endorsement.

About | Explore | User Guide | Topics | Subjects | Doubt Solver | Career Aptitude Test | Answers | Free Tools | What Should We Know?
Privacy | Terms |

Without work one finishes nothing. - Ralph Waldo Emerson
© 2026 Fatskills.com