Consider the “Never Never Land” example (Example 3.1).

a. What is the median age of the population of Never Never Land? What is the mean age ?

b. The Governor of Never Never Land needs to cut budget spending so he can buy a new luxury yacht. To reduce spending on old age pensions, he introduces “voluntary” euthanasia for all citizens on their 70th birthday. What will be the age distribution of citizens once the new steady-state population is achieved? What is the percentage savings on old age pensions?

c. Perhaps not surprisingly, the Governor is overthrown in a geriatric coup. The new Governor rescinds the voluntary euthanasia legislation and plans to pay for looking after the senior citizens by using immigration to stimulate economic growth and bring in more young people. There will be a steady influx of 1,000 people per year aged exactly 25. Birth rates on the island will also rise by 20% as a result. Does the proportion of potential workers (aged 20–65) increase by these policies?

 

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Example 3.1 The Population of Never Never Land Never Never Land is an isolated Island. To avoid overpopulation, the birth rate is carefully controlled at 5,000 per year. The isolation has meant that many modern medical facilities are not available: 5% of people of every age die each year. Under these conditions, the population is constant. (a) What is the total population of Never Never Land? (b) How many people draw the pension (available to everyone over 65)? Example 3.1 The Population of Never Never Land Never Never Land is an isolated Island. To avoid overpopulation, the birth rate is carefully controlled at 5,000 per year. The isolation has meant that many modern medical facilities are not available: 5% of people of every age die each year. Under these conditions, the population is constant. (a) What is the total population of Never Never Land? (b) How many people draw the pension (available to everyone over 65)?

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a The median age of the population of Never Never Land is 35 and the mean ... View the full answer