IDSB01H3 Chapter 12: Chapter 12.docx
21 Apr 2012
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Document Summary
Labor is the most malleable factor of production -> human capital. Developing human capital is key to developing a society, and not doing so can be disastrous. Assumoption: rapid pop rwoth can cause the total pop to exceed a natjuon"s productive cap so that real income person falls or rises unnecessarily slowly. The two factors that affect income per person are pop growth and total income growth. C&d argue that inc in avg pop growth leads to lower pop growth rate. The natural and the actual rate of pop growth. Natural rate of pop growth is the birth rate minus the death rate. The actual rate of pop growth can sometimes be different. It is the same as the natural, except that it takes into account migration. Demographic transition and now- developed economies: structural changes and industrialization changed the nature of many countries. Their birth and death rates both fell, resulting in lower natural pop growth rates.
