Which Sector Would Experience a Rise in Population in a Country

question 61

Multiple Choice

Which sector would experience a rise in population in a country undergoing a rapid population decline? 

• A) the portion of the overall population comprised of younger people 
• B) the portion of the overall population that are not threatened with labour shortages 
• C) the portion of the overall population that is consuming a large fraction of medical services 
• D) the portion of the overall population that is not on social security

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Definitions:

Diseconomies of Scale

The phenomenon where, as a firm or industry grows beyond a certain point, per unit costs start increasing due to inefficiencies.

Economies of Scale

Cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output decreasing with increasing scale.

Diminishing Marginal Returns

The principle that as additional units of a factor of production are added, the increase in output will eventually decrease, holding other factors constant.

Constant Returns to Scale

A situation where increasing all inputs by a certain factor results in output increasing by the same factor, indicating proportionate scalability of production.