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Summary Economics: Population

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Chapter 7 unit 7.2 population
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Economics IGCSE (0455)


Unit 7.2 Population

The global population
• The needs and wants of an ever-increasing world
population grow, but we still have the problem of limited
resources.
• In the 20th century, population growth in Europe and
many developed countries have slowed down. Where in
developing countries, population growth is quite rapid.

Is population growth a cause for concern?
• Reverend Thomas Malthus wrote about population growth
in the UK, then in the UK the population was growing
rapidly. And he wrote about how the increasing population
leads to lower standard of living as well as less resources
for everybody. This would be overpopulation.
• Although his theory did prove wrong about the UK,
because with the growing population technology and
productivity increased enough to meet the needs of the
growing population.
• Increasing numbers of people meant more consumers
with this increase in demand, it expanded the markets for
goods and services, stimulating investments, new capital
as well as creating employment for many -economic
growth occurred.


• People in work produce goods and services not only for
themselves, but also for people not in work.
• People rely on the labor force to produce the goods and
services they need and want. This is the dependent
population (The part of the population that does not work
and relies on others.)
• We can therefore calculate the dependency ratio. This
compares the number of people in the dependent

, population of the country with the working population in
the same country.
• Dependency ratio = dependent population
working population
• The dependent population includes young kids, school
kids, students old age people. The more that this
population increases, the higher the dependency ratio in a
country will be.
• More resources will be devoted to them, and medical and
welfare services.
• The optimum size of a population will be that which will
allow a country to maximize output per head of the
population from its existing resources.

Causes of population change.
• Causes of an increase:
Number of babies born
Number of people dying decreases
Immigration is greater than emigration (More people
coming into a country then people leaving.)

• The natural rate of increase in the population is the
difference between the birth rates and the death rates. If
your birth rates exceed death rates your population is
growing.
• Net inward immigration – number of immigrants exceeds
number of emigrants
• Net outward immigration – number of emigrants exceeds
number of immigrants

Birth rates.
• The average number of children born in a country each
year, compared to the total population is known as the
birth rate. It is normally expressed per thousand people.
• It is shown that African countries have higher birth rates to
that in Europe.
• Reasons for differences in birth rates:
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