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SS1: ECONOMICS - 2ND TERM

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Ageing distribution is the grouping of people into different categories. An ageing population is a country with an increasing number of old people and is also known as a declining population. Declining population is a situation where the population of a country continues to fall or decrease instead of increase. The dependent population are the people who are not working in a country, they are infants/old people in a country (0-18, 66years and above).

The dependent ratio is the total number of people who are not working to the number of people that are working.

Factors Responsible for Ageing or Declining Population

  1. Changes in the death rate
  2. Changes in the birth rate
  3. Lack of medical facilities
  4. Government policies e.g. excessive family planning
  5. War
  6. Major diseases like Ebola
  7. Natural disasters like earthquakes, hurricanes

Advantages of Decreasing or Declining Population

  1. Decrease in government expenditure
  2. Increase in government savings 
  3. Reduction in congestion
  4. Fall in house rent
  5. Increase in government investment

Disadvantages of Decreasing or Declining Population

  1. Contraction of the local market – demand falls
  2. Decrease in the labour force
  3. Decrease in production – it  happens since demand has fallen
  4. It will cause cyclical unemployment; as a result of low production
  5. High dependency ratio
  6. Reduction in the number of taxpayers

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