ECONOMICS (CBSE/UGC NET)

ECONOMICS

DEMAND

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
How would a decline in the birthrate affect the demand for baby clothes?
A
Increase
B
Decrease
C
Stay the same
D
None of the above
Explanation: 

Detailed explanation-1: -This trend predicts a persistently lower fertility rate in the U.S., which, absent increased immigration, would lead to a smaller workforce and an older population. In general, a smaller workforce and an aging population would have negative implications for economic productivity and per capita income growth.

Detailed explanation-2: -For the last 70 years, fertility rates have decreased worldwide, with a total 50% decline. Reasons include women’s empowerment in education and the workforce, lower child mortality and the increased cost of raising children.

Detailed explanation-3: -The most common causal factors of declining birth rates are an increase in the unmarried population and a decrease in the number of children in families.

Detailed explanation-4: -Explain your answer. The factors most clearly related to a decline in birth rates are increasing education and economic independence for women. In the demographic transition model, the lower death rate of the second stage is usually the result of increased levels of education.

There is 1 question to complete.