It is predicted that the UK economy will avoid another recession in the next two decades and that its population will increase significantly by 2040. Most of this predicted increase will come from immigration. By 2040, it is also expected that one in twelve people will be aged over 80. A number of countries, including some low-income countries, may have a more rapid population growth rate than high-income countries.
- (a)Identify two reasons why people are living longer.[2]
- (b)Explain two reasons why net immigration may increase the standard of living in a country.[4]
- (c)Analyse how fiscal policy could be used to stop a recession.[6]
- (d)Discuss whether or not low-income countries have a faster rate of population growth than high-income countries.[8]
Mark scheme
Marking points from the official mark scheme (Oct/Nov 2019). The mark or mark type is shown in brackets.
- [1] (a) better healthcare
- [1] (a) improved nutrition
- [1] (a) better housing
- [1] (a) better living standards
- [1] (a) higher incomes
- [1] (b) May increase the size of the labour force
- [1] (b) increase the number of goods and services available / increase output / increase GDP / economic growth
- [1] (b) May bring in new skills
- [1] (b) raise productivity
- [1] (b) increase the quality of products produced
- [1] (b) Fill jobs that local workers do not want to do
- [1] (b) reduce shortages
- [1] (b) Fill jobs that local workers do not have the qualifications to do
- [1] (b) reduce shortages
- [1] (b) Increase total (aggregate) demand
- [1] (b) which will encourage firms to increase their output
- [1] (b) Make better use of other resources
- [1] (b) if the country lacks labour / is underpopulated
- [1] (b) Increase tax revenue
- [1] (b) enabling government to spend more on e.g. education
- [1] (b) Immigrants may set up firms
- [1] (b) creating jobs / reducing unemployment / purchasing power
- [1] (b) May lower costs of production
- [1] (b) make products more affordable
- [1] (c) The government could cut taxes
- [1] (c) this could raise disposable income / purchasing power
- [1] (c) which may increase consumer spending
- [1] (c) cuts in corporate tax may provide more funds for firms
- [1] (c) raise investment
- [1] (c) encourage firms to expand their output
- [1] (c) increase employment / reduce unemployment
- [1] (c) A government could increase its own spending
- [1] (c) example e.g. healthcare
- [1] (c) this would increase total (aggregate) demand
- [1] (c) encouraging an increase in output
- [1] (c) Spending on infrastructure
- [1] (c) may reduce firms costs and so encourage higher output
- [1] (d) Some have a high birth rate
- [1] (d) reasons e.g. low number of women working,
- [1] (d) need for children to support parents in old age
- [1] (d) lack of education
- [1] (d) falling death rate
- [1] (d) natural increase
- [1] (d) due to improved healthcare
- [1] (d) rise in incomes
- [1] (d) Some high-income countries experience a high rate of net immigration
- [2] (d) factors attracting immigrants e.g. job opportunities, high income
- [1] (d) Some low-income countries experience net emigration
- [1] (d) Some low-income countries experience natural disasters and wars
- [1] (d) poor health care
- [1] (d) which increase the death rate
- [1] (d) Some high-income countries are experiencing a fall in the death rate
- [2] (d) causes e.g. improved living standards, advances in medicines
- [1] (d) although birth rates falling
- [1] (d) governments may provide incentives to try to raise the birth rate
- [1] (d) including financial aid / free child care
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