INSTRUCTOR DISCUSSION NOTES:
Maybe Wanting the Global Population to Fall Wasn’t Such a Good Idea After All

1. Is it necessary that automation must increase in production in order to combat the declining population numbers? Why or why not?

Answers may vary; have students focus on what is needed for status quo production. Would we really need to have greater production with fewer workers?

2. Suppose the government implemented a policy in which child care was 90% subsidized by the state, and was folded into the public education system. Why might a comprehensive child care policy help alleviate the problems identified with falling population?

Again, answers may vary. The subsidy would reduce the cost of having children (a la Becker’s theory of fertility), and the comprehensive child care policy would reduce the opportunity cost of having to choose between a career and a family.

3. As the population growth continues to decline, what will be the impact on the price of natural resources, e.g., a barrel of oil?

Unclear. Have students discuss relative impacts in the market for oil. Reduced population growth, all else constant, will cause demand to fall. Per capita consumption could increase, though, as could supplies.

Multiple Choice/True False Questions

1. The article summary implies that as the fertility rate falls below the replacement rate, population must necessarily begin to fall.
  1. True
  2. False
     ANS. B

2. Using productivity instead of seniority as the driving component behind wage determination would ________ the relative wage paid in the market.
  1. Increase
  2. Decrease
  3. Not change
  4. Insufficient information to answer the question.
     ANS. A

3. With no change in government policies, a reduction in population will cause the ________ to change, and the wage to ________.
  1. Supply of labor; rise
  2. Supply of labor; fall
  3. Demand for labor; rise
  4. Demand for labor; fall
     ANS. A

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