Final answer:
The Transitional Stage or Stage 3 of the Demographic Transition Model is characterized by a sharply dropping birth rate due to industrialization and urbanization.
Step-by-step explanation:
The stage characterized by a sharply dropping birth rate in the context of the Demographic Transition Model (DTM) is the Transitional Stage (also known as Stage 3). In this stage, a society witnesses significant decline in birth rates as a result of increased urbanization, access to healthcare, and changes in societal norms and family planning. During this stage, the population continues to grow but at a decelerating rate compared to Stage 2, where the death rate declined substantially.
The Industrial Stage (Stage 3) observes the decrease in birth rates as the society becomes more industrialized and urbanized. Countries like Mexico are examples of societies in Stage 3. Eventually, many societies move into the Post-Industrial Stage (Stage 4), where both birth and death rates stabilize at low levels, leading to a stable or even declining population, with Sweden being a representative example.