Which of the following statements regarding the impact of population growth on productivity is true?

Question

a. There is no evidence yet that rapid population growth stretches natural resources to the point that it limits growth in productivity.
b. Rapid population growth may dilute the capital stock, lowering productivity.
c. Rapid population growth may promote technological progress, increasing productivity.
d. All of the above are true.

Answer 1

The correct answer is d. All of the above are true.

Each statement presents a different perspective on how population growth can impact productivity:

• Statement a suggests that there is no definitive evidence that rapid population growth negatively affects natural resources in a way that would limit productivity. This implies that the relationship is still being studied and may vary based on context.

• Statement b points out that rapid population growth can lead to a dilution of capital stock (e.g., fewer resources per capita), which can lower individual productivity if the capital is not able to keep pace with population growth.

• Statement c posits that in some cases, rapid population growth could stimulate technological advancements, potentially increasing productivity as a response to the pressures of growth.

All these statements reflect different possibilities of how population growth can influence productivity, hence making option d the most accurate choice.