O Levels Economics (2281)•2281/13/O/N/20

Explanation
Aging Population Increases Health Demands
Steps:
- Identify the demographic change: Rise in retired people means more elderly individuals.
- Link to needs: Elderly often require more healthcare due to age-related issues.
- Connect to government spending: Public health services directly support this group.
- Evaluate options: Match which expenditure aligns with elderly demands.
Why B is correct:
- Health services expenditure rises with aging populations, as defined by public health economics where retiree healthcare costs increase due to chronic conditions and longevity.
Why the others are wrong:
- A. Defence: Relates to national security, unaffected by retiree numbers.
- C. Training grants: Targets workforce development, less relevant for retirees.
- D. Street lighting: Involves infrastructure maintenance, not tied to population age.
Final answer: B
Topic: Fiscal policy
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