What is the different between Pay-As-You-Go and Fully Funded security system? Briefly, explain [4 marks] The Security system in part (a) mostly applied to jobs in the formal market. However, the debate among the scholars questioned the financial security for people that work in the informal market. Briefly discuss how the issue can be resolved. [6 marks] Explain when country is considered beneficial from first demographic dividend? Is it possible for a country to benefit from second demographic dividend? [6 marks] Figure 1 shows consumption and labor income for country XX which reflects their economic of lifecycle. 1. IL 6,000 5,000 4,000 Thousands 3,000 2,000 1,000 Per capita labor income and consumption profile Consumption -Labor Income 0 10 20 30 40 50 Define life cycle hypothesis 70 80 Figure 1: Economic of Lifecycle for country XX [2 marks] Briefly explain by the life cycle hypothesis for country XX based on labor income, consumption and lifecycle profiles. [6 marks]