Questions: Select all that apply Which of the following are arguments against rapid economic growth? Rapid economic growth results in pollution, global warming and other environmental problems. Rapid economic growth is unsustainable due to the earth's finite resources. Rapid economic growth has not solved sociological problems like poverty and homelessness. Rapid economic growth reduces both the marginal propensity to consume and the marginal propensity to save in an economy.

The correct answers are:

1. Rapid economic growth results in pollution, global warming, and other environmental problems.
2. Rapid economic growth is unsustainable due to the earth's finite resources.
3. Rapid economic growth has not solved sociological problems like poverty and homelessness.

Explanation:

1. Rapid economic growth results in pollution, global warming, and other environmental problems.

   • This is a well-documented argument. Rapid industrialization and economic activities often lead to increased emissions of greenhouse gases, deforestation, and other forms of environmental degradation. For example, the industrial revolution led to significant pollution and environmental damage.

2. Rapid economic growth is unsustainable due to the earth's finite resources.

   • This argument is based on the concept of finite resources. The earth has a limited amount of natural resources such as fossil fuels, minerals, and water. Rapid economic growth can lead to the depletion of these resources, making such growth unsustainable in the long term. The concept of "peak oil" is an example where the maximum rate of extraction of petroleum is reached, after which the rate of production is expected to enter terminal decline.

3. Rapid economic growth has not solved sociological problems like poverty and homelessness.

   • Despite significant economic growth in many countries, issues like poverty and homelessness persist. This suggests that economic growth alone is not sufficient to address these complex social issues. For instance, the United States has experienced substantial economic growth over the past few decades, yet it still faces significant challenges related to poverty and homelessness.

4. Rapid economic growth reduces both the marginal propensity to consume and the marginal propensity to save in an economy.

   • This statement is incorrect. Generally, rapid economic growth can lead to higher incomes, which might increase both the marginal propensity to consume (MPC) and the marginal propensity to save (MPS). The MPC refers to the proportion of additional income that a household spends on consumption, while the MPS refers to the proportion saved. Economic theory suggests that as people become wealthier, they might spend more (increasing MPC) and also save more (increasing MPS), but the relationship is complex and context-dependent.