O Levels Economics (2281)•2281/12/O/N/23

Explanation
Aging Population Boosts Healthcare Costs
Steps:
- An aging population means a higher proportion of elderly people relative to working-age adults.
- Elderly individuals typically require more medical care due to age-related health issues.
- In high-income economies, advanced healthcare systems respond by allocating more resources to meet these needs.
- This leads to greater government and private spending on healthcare services.
Why D is correct:
- Aging populations increase the prevalence of chronic diseases and disabilities, directly raising healthcare expenditures as defined by demographic transition models.
Why the others are wrong:
- A: An aging population raises the dependency ratio by increasing the number of non-working elderly dependents.
- B: Aging often prompts higher immigration to offset labor shortages, not a fall.
- C: Older populations tend to have lower geographic mobility due to health limitations and settled lifestyles.
Final answer: D
Topic: Population
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