Question

For a country, an increase in population leads to an increase in workforce. But the unemployment rate is higher. Therefore, the increase in population could not translate into an increase in production.

Which of the following could be the cause of such a scenario?

• A. The workforce is skilled enough to increase production.
• B. The workforce is not skilled enough to increase production.
• C. A significant number of people migrated to other countries.
• D. There was a lack of raw material and machineries needed for production.

Answer 1

The correct option is B The workforce is not skilled enough to increase production.

A growing population means an increase in the needs of people and an increase in the availability of the workforce. An increase in the workforce, in turn, translates into an increase in the production. However, only a skilled workforce can lead to more productivity. Otherwise, it may lead to an increase in unemployment.