what are the way in which high population growth can lower GDP per capital?

Answer 1

To produce goods and services (collectively referred to as GDP), you need capital (machines and buildings). To produce a lot of GDP per capita, you need a lot of capital per worker. When population growth is high, it is possible for the workforce to grow faster than capital stock, so capital per worker may decline, leading to lower productivity and thus lower GDP per capita.

The problem with this reasoning is that is implicitly assumes that capital formation is a fixed parameter, while in reality it is not. Capital formation depends on both domestic savings and international capital flows. So high population growth need not lead to decreasing GDP per capita, if domestic savings rate increases or if foreigners can be persuaded to provide the "missing" capital (for example, by building factories that make exportable products).

Answer 2

GDP per capita means the how much GDP each person would have in the country if it was split among them.
So this is a question of pure maths. If you have a larger population but the same GDP, then the GDP per capita will be smaller because you are dividing the same amount for more people. So if the population growth rate is larger than the GDP growth rate, the GDP per capita will decrease over time.

Answer 3

How are available some questions, places like Canada, France, Australia, etc are considered Socialist countries yet to evidence a separate ingredient, they without notice are no longer? enable's only evaluate those few samples by making use of your charts supplied and we are going to checklist the countries typical inhabitants in basic terms for kicks. u . s ., #6, $40 six,381, inhabitants: 309.4 million Australia, #10, $38,911, inhabitants: 22.3 million Canada, #thirteen, $38,0.5, inhabitants: 34.a million million France, #21, $33,679, inhabitants: sixty 5.4 million