What Is the "4-2-1" Conundrum, and Why Do Demographers Fear

question 16

Multiple Choice

What is the "4-2-1" conundrum, and why do demographers fear it?

• A) Compared with the top, there are four times as many people on the bottom of the age pyramid and two times as many in the middle. Demographers fear that that the population will explode.
• B) In China there are four grandparents and two parents but only one child to support them all when they retire.
• C) In China in 1982, 1% of the population was over 65. In 1996 it was 2%, and now 4% of the population is over 65. The result is that there are more older people to support.
• D) In China, 4% of the population works, 2% are underage, and 1% are retired. Demographers fear this will reverse.
• E) Worldwide, one in four females gets an education and one in two males gets an education. Demographers fear that women will have no other option then to have children.

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Definitions:

Budget Goal

A financial objective set during the budgeting process, aiming for specific income, expenditure, or savings targets over a period.

Straight Line Pay

Compensation structure where employees receive a fixed, regular payment or salary, typically without variation for actual hours worked or performance levels.

Managers' Incentives

Various forms of compensation and rewards designed to motivate managers to align their actions with the objectives of the owners or shareholders.

Perverse Incentive

An incentive that unintentionally encourages negative or undesired behaviors, leading to outcomes that are contrary to the initial intentions.