Population Cambridge IGCSE Economics revision

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In plain words

A country's population changes in only three ways: people are born, people die, and people move in or out. The balance between them decides whether it grows or shrinks, and whether it gets younger or older.

Both the size and the age of a population matter to an economy: who works, who needs supporting, and what people want to buy.

6 things to know

  1. Birth rate: the number of live births per 1000 of the population in a year. Death rate: the number of deaths per 1000 in a year.
  2. Net migration = immigration (people moving in) − emigration (people moving out).
  3. Birth rates tend to be higher in developing countries: children may be needed to work or to support parents in old age, and there is less access to contraception and to education for women. Death rates fall as healthcare, clean water and diet improve.
  4. The optimum population is the size at which output per head is highest, given the country's resources.
  5. An ageing population means more spending on pensions and healthcare and a smaller share of people working, so workers may pay more tax. It also changes what is demanded.
  6. A growing population gives a bigger workforce and a bigger market, but puts pressure on housing, services and resources.

Worked example

A country has a birth rate of 30 per 1000 and a death rate of 12 per 1000, with no migration. By how much does its population grow in a year?

  1. Natural increase = birth rate − death rate.
  2. Natural increase = 30 − 12 = 18 per 1000.
  3. That is 1.8% a year.

Tips and tricks

  • Rates are "per 1000", not per cent. Divide by 10 to turn a rate per 1000 into a percentage.
  • Optimum does not mean biggest. It is the size that makes the most of the country's resources: too few people can be as inefficient as too many.
5 questions, about 2 minutes.

It lands in your notebook with its questions as flashcards.

Population: 5 questions and answers

These are the quiz’s questions. Do the quiz first, then come back here for the ones that got you.

  1. The birth rate is
    • the total number of births in a year
    • the number of live births per 1000 of the population in a year (the answer)
    • the number of children per family
    • births minus deaths

    It is a rate, per thousand people.

  2. 400 000 people move into a country and 250 000 move out. What is the net migration?
    • 650 000 inward
    • 150 000 inward (the answer)
    • 150 000 outward
    • 250 000 outward

    400 000 − 250 000 = 150 000 more arriving than leaving.

  3. Which would cause a country's death rate to fall?
    • less clean water
    • better healthcare (the answer)
    • more emigration
    • a lower birth rate

    Fewer people die of illnesses that can be treated or prevented.

  4. What is the optimum population?
    • the largest population a country can have
    • a population with no unemployment
    • the population at which output per head is highest (the answer)
    • a population that is not changing

    It makes the best use of the country's resources.

  5. Which is a likely effect of an ageing population?
    • lower spending on healthcare
    • higher spending on pensions (the answer)
    • a larger proportion of people in work
    • more demand for schools

    More people are past retirement age.

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