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ACCA Applied Knowledge · Business and Technology · Social and demographic factors

A manufacturer plans to open a factory in a region where the population is young, rapidly growing and increasingly urban, with rising female participation in work. Which of the following is the most appropriate conclusion from the demographic data alone?

Labour supply is likely to be plentiful and demand for convenience and urban consumer goods is likely to grow. A young, growing population with rising female participation expands the workforce, while urbanisation concentrates consumers, so the other conclusions contradict the demographic data.

  1. ALabour supply is likely to be plentiful, and demand for convenience and urban consumer goods is likely to growCorrect
  2. BLabour will be scarce because the population is young
  3. CDemand will fall because urbanisation reduces the size of the consumer market

Explanation

A young, growing population with rising workforce participation points to a larger labour supply. Urbanisation concentrates consumers and typically increases demand for convenience goods. Youth does not imply scarcity, and urbanisation does not shrink the market.

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