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O-LevelEconomicsGovernment and the macroeconomy2281/11 · May/June 2016 · Q261 Mark

It has been predicted that by 2050 China will have 53 million fewer children under 14, 100 million fewer workers and 234 million more people aged over 60. What will be the likely effect in China of these changes?

AThe dependency ratio will fall.
BThe Government's expenditure will fall.
CThe Government's income will fall.
DThe total population will fall.

✓ Correct answer

C: The Government's income will fall.

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About this question

Topic
Government and the macroeconomy, O-Level Economics (syllabus 2281). Multiple choice, 1 mark.
Source
O-Level Economics, May/June 2016 Paper 1 Variant 1, question 26.

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