ACCA Applied Knowledge · Business and Technology · Social and demographic factors
A country's population is ageing, with a rising proportion of people over 65 and a falling birth rate. Which of the following is the most likely consequence for businesses?
The most likely consequence is higher demand for healthcare and retirement-related services together with a smaller pool of young workers. An older population with fewer births increases need for pensions and care, while demand for children's products declines.
- AIncreased demand for healthcare and retirement-related services, and a shrinking pool of young workersCorrect
- BA fall in demand for pension and savings products
- CAn increase in demand for children's toys and school equipment
Explanation
An ageing population with low births raises demand for healthcare, leisure and pension services and reduces the supply of younger labour. Pension demand would rise, not fall, and demand for children's goods would fall.
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