Question

Determine whether each of the following statements about human resources and economic growth in less-developed countries (LDCs) is true or false. Statement Population growth increases both GDP and GDP per capita. Brain drain occurs when educated workers of LDCs pursue careers in wealthier countries. LDCs often experience rapid population growth with high human capital investment. The typical LDC often lacks the ability to educate and train its labor force. True False

Answer 1

1. False

Explanation: Population growth can increase GDP but it does not increase GDP per capita when population growth is higher than GDP growth.

2. True

Explanation: In the brain drain, LDCs experience an outflow of human capital from the country to other countries.

3. False

Explanation: LDCs often does not have enough resources for human capital investment.

4. True

Explanation: LDCs often does not have enough resources for educating and training the workforce.