A developing country has a high proportion of its population under the age of 15. Which economic problem is this most likely to cause?

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Question

A developing country has a high proportion of its population under the age of 15. Which economic problem is this most likely to cause?

Accepted Answer

High government spending on education and healthcare — Award 1 mark for recognising that a young population creates pressure on government spending for schools, teachers, and child healthcare. A is incorrect — a young population will eventually increase the labour force. C is incorrect — a high proportion of young dependants increases the dependency ratio. D is incorrect — this is associated with an ageing population, not a young one.

Answer

A shortage of workers in the labour force

Answer

A decrease in the dependency ratio

Answer

High government spending on education and healthcare

Answer

An ageing population requiring pension payments

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