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Chapter 6 The Population Problem Introduction Chapter 6 covers the economic approach to population control— Different perspectives on population growth Little consensus on optimal population growth or level. How population and the development process affect each other The effects of population growth on income inequality and the economic determinants of fertility. Objectives Discuss population growth rates from a historical and current perspective. Present the relevant public policy questions related to population growth. Show the relationship between average product and marginal product and how average product is related to welfare. Illustrate how high population growth can retard per capita economic growth by decreasing the percentage of the population in the labor force. Present other arguments on population growth and economic growth and development. Discuss the relationship between population density and poverty. Present the theory of demographic transition. Relate the concept of economic efficiency and sustainability to population control. Explore the population/environment connection. Illustrate the potential externalities associated with childbearing. Present the microeconomic theory of fertility. Show how economic incentives can shift the demand and/or marginal cost curves for children. Historical Perspective World Population Growth Population growth is a significant source of nonsustainability. Average rates of population have declined in most countries except for on the continent of Africa. Both fertility rates and birthrates have exhibited downward trends recently. Most developing countries are expected to have substantial increases in their populations. Poorer countries are expected to contribute to 98% of population growth between 1998 and 2025. TABLE 6.1 Average Annual Rate of Growth by Region and Development Category: 1950–2050 [In percent] (1 of 2) TABLE 6.1 Average Annual Rate of Growth by Region and Development Category: 1950–2050
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