Economics 9708 · AS & A Level · Long-run costs and economies of scale

Long-run costs and economies of scale — practice question

In China’s 2020 population census, the country stated that its total population was a little under 1.4 billion. The birth rate had kept falling, the number of people reaching retirement age had risen, and the proportion of the workforce had fallen. Which policy change would most rapidly maintain China’s economic growth given these population changes?

  • AAllow more immigration of labour.
  • BEncourage women to leave work to have more children.
  • CIncrease research in technology to improve labour productivity.
  • DTax the labour force more to pay for the increasing number of pensions.

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