Answer to Question #211992 in Macroeconomics for Corni

Question

If the fertility rate in Nigeria is very high. How will this affect economic growth and the standard of living?,

 

 

Answer 1

A high rate of fertility leads to the high growth of the population. The increased level of the population thus affects economic growth and the standard of living in several ways. Economic growth will be affected in terms of budgeting and planning for the economy, equal allocation of resources will be a critical problem and the outcome will hinder development. Scarcity of resources will be a major problem, most positive and sustainable growths begin at the grassroots level but they are usually improved by the national government, thus with a high population, there will be a low growth rate within the economy. Secondly, standards of living will be affected since basic needs such as food and shelter will not be met at an optimum level, social amenities such as school and healthcare; the cost of the services will not be met by the majority of people because of low-income degrees, it is a negative sign to economic growth since good healthcare and education are the backbones towards development.