Rapid Population Growth Impedes Economic Progress

Steps:

• Identify key barriers to development in low-income countries: resource scarcity, infrastructure limits, and human capital demands.
• Evaluate each option: surpluses, savings, investments aid growth; population growth strains resources.
• Link rapid population to reduced per capita GDP via Malthusian theory.
• Confirm D as the limiting factor by elimination.

Why D is correct:

• Rapid population growth outpaces economic output, lowering per capita income as defined in the demographic-economic model where population increase exceeds resource growth.

Why the others are wrong:

• A: Balance of payments surpluses boost foreign reserves and investment, promoting development.
• B: High saving ratios fund capital accumulation, accelerating growth per the Harrod-Domar model.
• C: Large inflows of foreign investment provide capital for infrastructure and jobs, enhancing development.

Final answer: D