A positive effect of a rapid population increase is?

A. an excessive budget deficit
B. a reduction in standard of living
C. a wider market for goods and services
D. a higher dependency ratio

Correct Answer:

Option C – a wider market for goods and services

Explanation

The positive effect of the large population is that:

– it increases the availability of cheap labour
– It leads to the formation of the large market as investors would like to invest in a country with a large population
– it motivates people to innovate