Question 1

Which is NOT a key assumption used in population projections?

Accepted Answer

Projections use fertility, mortality and migration assumptions; logo design is unrelated.

Question 2

Which is NOT typically a policy response to demographic challenges?

Accepted Answer

Policies generally expand access and capacity, not remove healthcare access.

Question 3

Which statement is correct?

Accepted Answer

Rural–urban migration contributes to urban growth; they are related but not identical.

Question 4

A brand positioned on “value for money” mainly focuses on:

Accepted Answer

Value-for-money positioning highlights good benefits at reasonable price.

Question 5

A common business impact of migration in destination cities is:

Accepted Answer

Migrants increase demand for housing, food, transport, telecom and banking services.

Question 6

A population pyramid with a wide base and narrow top indicates:

Accepted Answer

Expansive pyramids show high births and a larger share of children.

Question 7

One limitation of demographic segmentation is that it may:

Accepted Answer

Demographics describe who customers are; they may not fully capture attitudes/values.

Question 8

Which can convert demographic dividend into a demographic burden?

Accepted Answer

Without employability and jobs, a large working-age group leads to unemployment and social stress.

Question 9

In Stage 1, both birth rate and death rate are generally:

Accepted Answer

Stage 1 is traditional: high BR, high DR, low growth.

Question 10

Demographic dividend generally occurs when:

Accepted Answer

Dividend arises from a larger working-age share with lower dependency, given jobs and skills.

Question 11

A population projection is:

Accepted Answer

Projections are conditional “if-then” estimates based on fertility, mortality and migration assumptions.

Question 12

An age–sex pyramid is a diagram showing:

Accepted Answer

Age–sex pyramid displays age distribution separately for males and females.

Question 13

Which is a determinant of mortality?

Accepted Answer

Healthcare, nutrition, sanitation and environment strongly influence mortality levels.

Question 14

Underemployment means:

Accepted Answer

Underemployment refers to inadequate utilization of labour, often common in informal sector.

Question 15

Dependency ratio measures:

Accepted Answer

It shows the burden of dependent ages (children + elderly) on working-age people.

Question 16

Which of the following is NOT a demographic variable?

Accepted Answer

Brand logo is a marketing element, not a population characteristic.

Question 17

Civil Registration System (CRS) mainly records:

Accepted Answer

CRS is an official system for registering births and deaths (and sometimes other vital events).

Question 18

Push factors are:

Accepted Answer

Push factors include unemployment, low wages, poor services, disasters, etc.

Question 19

Sustainability mainly means:

Accepted Answer

Sustainability balances present needs with future well-being.

Question 20

Penetration rate in business forecasting means:

Accepted Answer

Penetration rate is the share of target segment that becomes customers.

Question 21

Define natural increase.

Accepted Answer

Natural increase is population growth due to births minus deaths (excluding migration).

Question 22

Define sustainability.

Accepted Answer

Sustainability means meeting present needs without harming the ability of future generations to meet their needs.

Question 23

What is a population projection?

Accepted Answer

A population projection is an estimate of future population size and structure based on assumptions about fertility, mortality and migration.

Question 24

What is seasonal migration?

Accepted Answer

Seasonal migration is temporary movement of people for employment during certain months or seasons, after which they often return.

Question 25

State one advantage of demographic segmentation.

Accepted Answer

One advantage is that demographic data is easy to measure and helps identify customer needs and purchasing power (any one advantage).

Question 26

What is employability?

Accepted Answer

Employability is the ability to get a job, perform it effectively and remain employable through relevant skills and attitude.

Question 27

What is cohort-component method (in simple words)?

Accepted Answer

Cohort-component method projects population by age groups by adding births, subtracting deaths, and adjusting for migration over time.

Question 28

What is dependency ratio?

Accepted Answer

Dependency ratio is the number of dependents (children and elderly) per 100 working-age people.

Question 29

What is market segmentation?

Accepted Answer

Market segmentation is dividing the market into groups of customers with similar characteristics, such as age, income or education.

Question 30

Define business demography.

Accepted Answer

Business demography is the application of demographic data and analysis to business planning and decision-making.

Question 31

Explain Stage 2 (early expanding) of demographic transition (any three points).

Accepted Answer

Stage 2 (early expanding) can be explained as follows:

1) Death rate falls rapidly due to improved sanitation, vaccination, nutrition and healthcare.
2) Birth rate remains high because social norms and early marriage patterns change slowly.
3) As a result, population growth becomes very high (population boom) and the population is young.

(Any three points can be written.)

Question 32

Write any three steps to convert population projections into demand forecast.

Accepted Answer

Steps to convert population projections into demand forecast include:

1) Choose the target segment (age/region) from projected population.
2) Estimate penetration rate and usage frequency.
3) Convert to quantity and revenue using average consumption and price.

(Any three steps can be written.)

Question 33

Write any three methods of population projection.

Accepted Answer

Methods of population projection include:

1) Arithmetic method.
2) Geometric/Exponential method.
3) Cohort-component method.

(Any three methods like trend extrapolation can be written.)

Question 34

Explain any three assumptions used in population projections.

Accepted Answer

Assumptions used in population projections include:

1) Fertility assumptions (future birth rates/TFR trends).
2) Mortality assumptions (life expectancy and death rate changes).
3) Migration assumptions (net migration in/out trends).

(Any three assumptions can be written.)

Question 35

Explain how urbanization changes consumption patterns (any three points).

Accepted Answer

Urbanization changes consumption patterns in many ways:

1) Higher demand for packaged foods, convenience services and modern retail.
2) Greater use of banking, credit and digital payments.
3) Increased spending on housing, transport, education, healthcare and entertainment.

(Any three points can be written.)

Question 36

Discuss infrastructure demand due to urbanization and explain business opportunities and risks.

Accepted Answer

Rapid urbanization increases population in cities, which creates heavy demand for physical and social infrastructure. Without timely infrastructure development, cities face congestion, slums and poor quality of life.

Major infrastructure demands include housing (especially affordable housing), water supply and sanitation, sewage systems, electricity, internet connectivity, roads and public transport. Urban growth also requires more schools, skill centers, hospitals and waste management systems. When these facilities do not expand at the same pace as population, service gaps appear.

This creates business opportunities as well as risks.

| Area | Opportunities | Risks |
|---|---|---|
| Housing & construction | real estate, building materials, rentals | land scarcity, regulations, high costs |
| Transport & logistics | public transport, delivery services, warehousing | traffic congestion, delays |
| Utilities & services | water tech, waste management, telecom | service breakdowns, compliance |
| Consumer markets | retail, fintech, healthcare demand | intense competition, price pressure |

Therefore, businesses can grow in urban markets by meeting infrastructure-linked demand, but they must manage risks like rising costs, congestion, competition and regulatory requirements.

Question 37

Explain sustainability challenges related to population and suggest policy and business responses.

Accepted Answer

Sustainability challenges arise when population growth and consumption patterns increase pressure on natural resources and environment. The challenge is not only “how many people” but also “how much and how they consume,” especially in rapidly urbanizing areas.

Population and urban growth increase demand for water, energy, housing and transport. They also increase waste generation, pollution and land-use change. If city infrastructure does not keep pace, problems like congestion, poor air quality and unsafe water become serious.

Policy responses include sustainable urban planning, strengthening public transport, affordable housing, clean energy adoption, efficient water management, waste segregation and recycling, and strict pollution control.

Business responses include energy efficiency, green supply chains, eco-friendly packaging, and circular economy practices. Companies can also invest in clean technologies and reduce waste across operations.

```mermaid
+flowchart LR
+  A[Urban growth + consumption] --> B[Resource pressure]
+  B --> C[Pollution & waste]
+  C --> D[Policy + business action]
+  D --> E[Sustainable outcomes]
+```

Therefore, sustainability requires combined action by government and business. When development is planned with clean technology and inclusive services, population and urban growth can be managed without harming future generations.

Question 38

Explain workforce planning and its importance for organizations.

Accepted Answer

Workforce planning is the systematic process of ensuring that an organization has the right number of employees with the right skills at the right time to achieve its objectives. It connects business strategy with manpower requirements.

Workforce planning is important for several reasons. First, it helps organizations forecast future skill needs and avoid shortages or excess staff. When expansion or new technology is planned, workforce planning estimates how many people are required and what skills are needed.

Second, it supports better recruitment and selection. By identifying skill gaps, companies can hire the right talent and reduce cost of wrong hiring.

Third, workforce planning promotes training, reskilling and succession planning. Organizations can prepare employees for future roles and leadership positions, reducing dependency on external hiring.

Fourth, it improves productivity and cost control. Right staffing levels reduce overwork, errors and wasted labour hours. It also supports retention by aligning career paths and performance management.

```mermaid
+flowchart LR
+  A[Business goals] --> B[Forecast manpower needs]
+  B --> C[Gap analysis]
+  C --> D[Hire / Train / Reskill]
+  D --> E[Deploy & monitor]
+```

Thus, workforce planning ensures stability in operations and helps organizations remain competitive by building a skilled and productive workforce.

Question 39

Explain demographic segmentation and discuss its benefits and limitations.

Accepted Answer

Demographic segmentation is dividing the market into groups based on variables such as age, gender (where relevant), income, education, occupation, family size and region. It is widely used because demographic data is relatively easy to obtain from census, surveys and company records, and it strongly influences needs and purchasing power.

Benefits of demographic segmentation include better understanding of customer needs, efficient use of marketing budget, improved product design and clearer targeting. It helps firms choose suitable price points and communication channels based on income and education.

However, it also has limitations. Demographics may not fully explain attitudes, lifestyle and values, so psychographic factors may be needed. Wrong assumptions and stereotypes can lead to poor targeting. Segments can change over time due to migration, income growth and technology adoption. Also, customer data should be used ethically with privacy protection.

| Point | Benefit | Limitation |
|---|---|---|
| Data | easy to measure | may be outdated or incomplete |
| Insight | links to needs & affordability | may ignore attitudes/values |
| Practice | supports clear targeting | stereotypes and privacy issues |

Therefore, demographic segmentation is very useful, but it works best when combined with behavioral/psychographic insights and ethical data use.

Question 40

Explain population aging: causes, impacts and policy responses.

Accepted Answer

Population aging means an increase in the proportion of elderly (60/65+) in the total population. Aging is happening in many societies as they develop.

Causes: The main causes are declining fertility (fewer births) and rising life expectancy due to better healthcare, nutrition and living standards. Over time, fewer young people enter the population while more people survive to older ages.

Impacts: Aging increases old-age dependency ratio, creating pressure on working-age earners and public budgets. Governments and families need to spend more on healthcare, pensions and social security. Labour markets may face shortages, and businesses may need to redesign work, reskill older workers, and adopt automation. At the same time, aging creates market growth for healthcare, pharmaceuticals, insurance, retirement planning and senior care services.

Policy responses can be summarized as:

| Area | Policy response |
|---|---|
| Health | geriatric healthcare, preventive care |
| Income security | pensions, social security support |
| Work | flexible work, reskilling, later retirement options |
| Care | community care and elder-care facilities |

Therefore, aging is both a challenge and a market shift. With proper policy planning, societies can manage costs and maintain productivity while supporting elder well-being.

Business Demography — Question Paper

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