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JAMB Economics 1997 Question 6

Question 6

Population

When a country's population is experiencing increasing returns, that country is said to be

  1. A.overpopulated
  2. B.economically poor
  3. C.over producing goods and services
  4. D.underpopulated
Show the answer and explanation

Answer: D (underpopulated)

Explanation

If adding people raises output per head, the country does not yet have enough people to use its resources fully: it is below the optimum population, so it is underpopulated.