Economist Michael Kremer provides some support for the hypothesis that an increase in population might foster economic prosperity. Which statement best explains this hypothesis?
A) More people can produce more ideas, which contribute to increasing productivity.
B) More people are able to produce more output, everything else being the same.
C) A larger population implies more demand for goods and services, which stimulates the economy.
D) When there is a large number of children, governments need to invest more in education, which fosters economic growth.

Question

Quizplus · Accepted Answer

Kremer's hypothesis is based on the idea that a larger population can generate more innovative ideas, which in turn can lead to increases in productivity and economic growth. This is because with more people, there's a higher chance of generating unique and valuable ideas that can contribute to technological and economic advancements.

Economist Michael Kremer Provides Some Support for the Hypothesis That