Implicationof population changr for capital formation
Answers
Answer:Faster population growth makes the choice more scarce between higher consumption now and the investment needed to bring higher consumption in the future. Economic development depends upon investment. In UDCs the resources available for investment are limited. Therefore, rapid population growth retards investment needed for higher future consumption.
Consequence # 2. Overuse of Resources:
Rapid population growth tends to overuse the country’s natural resources. This is particularly the case where the majority of people are dependent on agriculture for their livelihood. With rapidly rising population, agricultural holdings become smaller and unremunerative to cultivate. There is no possibility of increasing farm production through the use of new land (extensive cultivation).
Explanation: