Skip to content

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

Zentra Ltd is a manufacturer in a country where the working-age population is shrinking because of low birth rates. Which response is most likely to help Zentra address the resulting labour supply problem?

Investing in automation and recruiting older workers through flexible working best addresses a shrinking working-age population, because it reduces reliance on scarce young labour and taps an underused group. Cutting training, ignoring the trend or closing operations does not solve the labour shortage.

  1. AInvest in automation and recruit older workers through flexible workingCorrect
  2. BReduce spending on staff training to cut costs
  3. CTarget marketing only at the youngest consumer segment
  4. DClose all domestic operations immediately

Explanation

A shrinking workforce makes labour scarce, so automation and retaining or recruiting older workers directly address supply. Cutting training does not solve scarcity. Targeting only young consumers ignores the demographic shift, and immediate closure is an extreme, unjustified reaction.

Did you get it right without looking?

One question tells you little. A timed set on Social and demographic factors shows your real accuracy, how long you take and where you lose marks.

Practise Social and demographic factorsFree diagnostic mock

More Social and demographic factors questions