Japan's birth rate is falling. Its population is ageing, and declining at a faster rate than any other country's population. This has an impact on the amount that the Japanese Government spends on pensions. Its government is considering measures to increase the country's birth rate and to encourage immigration.

Mark scheme

Marking points from the official mark scheme (May/June 2017). The mark or mark type is shown in brackets.

1. [2] 1 mark each for each of two causes identified: ∞ higher levels of education ∞ better family planning/use of contraceptives ∞ higher proportion of women in the labour force ∞ lower infant mortality rate ∞ increased state provision of state pensions ∞ state support for farmers ∞ war ∞ government policy ∞ drop in standard of living/higher costs ∞ older population ∞ decrease in fertility rates
2. [4] 1 mark each for each reason identified: ∞ educated people tend to have higher incomes ∞ educated people tend to be better informed ∞ educated people tend to do less physically demanding/dangerous jobs 1 mark each for each of two reasons explained: ∞ can afford a higher standard of living/afford medical care ∞ more likely to lead a healthier lifestyle/smoke less/drink less alcohol ∞ less likely to be worn out/injured at work
3. [6] Up to 4 marks for the diagram: ∞ axes correctly labelled (1) ∞ curve drawn, either bowed out or as a straight downward sloping line, meeting the axes (1) ∞ new curve drawn (1) ∞ position of the new curve to the right of the original indicated either by labelling or an arrow (1) Up to 2 marks for written analysis: ∞ net immigration will increase resources/labour (1) ∞ more resources will increase productive potential/enable countries to produce more (1)
4. [8] Up to 5 marks for why it should: Ageing population increases the burden of pensions (1) result in higher taxes (1) or lower government spending on another area (1) opportunity cost (1) benefits of spending on alternatives (1). Reducing pensions may encourage some older people to continue to work (1) increase income tax revenue (1) increase output (1) may keep some older people healthier (1). Up to 5 marks for why it should not: May increase poverty/lower standard of living for some (1) with a lower pension some people may not be able to afford basic necessities (1) no other source of income (1). May mean that some older people may have to continue to undertake physically demanding jobs (1) these may harm their health (1). Lower government spending on pensions may reduce total demand (1) may reduce output (1) may increase unemployment (1) lower tax revenue (1).