Cambridge International as and a level Economics Ebook

2
Outline the likely costs and benefi ts of the increased 
global demand for biofuels.
SELF-ASSESSMENT TASK 
1.2
China: the challenges of an ageing population
An ageing population is one usually associated with 
developed economies. Falling birth rates and increased 
life expectancy in many European countries and Japan 
has created a situation in which younger generations are 
facing the prospect of caring for an ageing population.
This demographic situation is now a major problem in 
China. The origin lies in China’s one-child policy which 
has restricted the number of children that most urban 
families could have and was originally designed to reduce 
the rate of growth of a booming population. There have 
Read the feature below and then answer the questions that follow.
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Cambridge International AS Level Economics

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been positive outcomes from this policy. At present more 
than 70% of the population are able to work and produce 
goods – fuelling China’s high level of economic growth.
Fewer new workers are now joining the labour force 
and many of those who are do not want to take on the 
low paid, unskilled jobs of the previous generation. In 
addition, China is facing a substantial increase in the 
number of old people, resulting in additional pressures 
on health and social care facilities.
Projections suggest that the impact of demographic 
change could have an even more adverse eff ect on the 
economy. Historically, production in China has exceeded 
consumption, resulting in substantial trade surpluses 
with the rest of the world. In contrast, over the next 
few decades consumption may exceed production; 
what is certain is that by 2050 China will have far more 
elderly people than any other country, 26% of the total 
population.
Source:
‘China’s rapidly ageing population’, Carnegie Europe, 5 July 2013; ‘Ageing China’, BBC News, 20 September 2012.