5 Economics_Demographics_QA_Cards Flashcards
What is the ‘One-Child Policy’, and when was it enforced?
Enforced in 1979, it aimed to limit most families in China to a single child to control population growth, offering incentives for compliance and penalties for violations.
What are the economic implications of the demographic shift in China?
A shrinking workforce leads to reduced outputs (LRAS), slower GDP growth, and reduced aggregate demand due to lower consumption.
What is the ‘4-2-1 Phenomenon’ in China’s demographics?
One working adult supports two parents and four grandparents, reflecting the social burden of an aging population.
Define ‘Demographic Dividend’ and its potential impact on the economy.
The economic growth potential that arises from changes in a country’s age structure, primarily when the working-age population (aged 15 to 64) grows larger relative to the non-working-age population, fostering labor supply, savings, and investment.
What factors contribute to the exhaustion of the ‘Demographic Dividend’?
Population aging increases dependency ratios, reduces savings, and slows GDP growth as the working-age population declines.
What is the ‘Lewis Turning Point’, and how does it affect labor markets?
It marks the end of surplus labor in agriculture, leading to rising wages and signaling a shift to a more constrained labor market.
What are the characteristics of the urban labor market segmentation in China?
Urban Hukou holders have access to higher-paying, skilled jobs, while migrants take lower-paid, unskilled positions with limited wage growth.
How has the ‘9-9-6 Work Culture’ impacted China’s economy?
Short-term productivity gains are overshadowed by long-term issues like talent drain, declining labor productivity, and economic instability.
What challenges does youth unemployment pose in China?
High unemployment rates among young workers highlight mismatches in skills and demand, exacerbating urban labor market segmentation.
What is the role of rural-urban migration in stabilizing China’s labor market?
Migrants help balance labor supply in urban markets, returning to rural areas during slowdowns and moving to cities in economic booms.
How did the institutional transformation in the 1990s reshape China’s labor market?
The dissolution of the ‘iron rice bowl’ system introduced layoffs, market-driven employment, and increased labor mobility.
What economic model illustrates the effects of demographic changes on GDP?
The AD-AS model shows how reduced population growth lowers aggregate demand and shifts long-run aggregate supply (LRAS) downward.
What is the economic growth potential formula?
GDP = Y = A K^a L^(1-a)
