Previous Year Question
Role of Human Resources in Economic development, which of the following statement/s is/are correct?
Effects of economic development on population growth.
Effects of population growth in economic development.
Select the correct answer using the code given below –
Code –
Only 1
Only 2
Neither 1 nor 2
Both 1 and 2
Correct Answer: D
Detailed Solution
The relationship between population and economic development is a two-way relationship. Human resources, on the one hand, provide labour, knowledge and skills to the production process, while on the other hand, the same population is also the consumer of goods and services.
Statement 1 is correct. Economic development affects population growth. With development, changes occur in income, education, health facilities, urbanization and the socioeconomic position of women. During the Demographic Transition, improved healthcare may initially reduce the death rate; in later stages, education, urbanization and changing family preferences tend to reduce birth rates and fertility.
Thus, economic development can influence both the pace of population growth and the structure of the population.
Statement 2 is also correct. Population growth affects economic development. With adequate education, health, skills and employment, a growing working population can support development by expanding production, labour supply and market size.
Conversely, if population grows very rapidly while employment and capital formation do not expand at the same pace, pressure may increase on resources, infrastructure, education, health and employment. This can slow improvements in per capita income and living standards.