Role of Human Resources in Economic development, which of the following statement/s is/are correct?
1. Effects of economic development on population growth.
2. Effects of population growth in economic

Question

Role of Human Resources in Economic development, which of the following statement/s is/are correct?
1. Effects of economic development on population growth.
2. Effects of population growth in economic development.
Select the correct answer using the code given below –

UnlockIAS · Accepted Answer

Correct — D, Both 1 and 2. The relationship between population (human resources) and economic development runs in both directions, and the study of this topic covers both. (1) Economic development shapes population growth: rising incomes, urbanisation, better healthcare and female education drive the demographic transition — death rates fall first, then birth rates, changing the growth rate. (2) Population growth shapes economic development: a growing working-age population can boost output as a 'demographic dividend', or, if it outstrips capital and jobs, can strain resources and per-capita income. Because both effects are genuine dimensions of the subject, both statements are correct.

Why the other options are wrong — (a) The effect of economic development on population growth is real, but so is the reverse — how population growth affects development — so limiting the answer to 'Only 1' drops a valid half of the two-way relationship.  (b) The effect of population growth on economic development is real, but the influence of economic development on population growth (the demographic transition) is equally part of the topic, so 'Only 2' is incomplete.  (c) Both effects are well-established in development economics, so rejecting both is incorrect.

Concept: In development economics, human resources (population) and economic development have a two-way, mutually reinforcing relationship. Development influences population through the demographic transition — as economies grow, mortality and then fertility decline. Conversely, population influences development through the size and quality of the labour force: a large working-age share can accelerate growth (the demographic dividend) if it is educated, healthy and employed, but can burden the economy if it is not.

State PCS 2023 Q102 — Economy PYQ with Answer

State PCS 2023 Q102 — Economy PYQ with Answer