Directions : Read the following passage and answer the given questions. Japan…
2024
Directions : Read the following passage and answer the given questions.
Japan is grappling with a demographic crisis as it faces the reality of being one of the oldest nations in the world. Recent data shows that more than 10% of Japan’s population is aged 80 or older, while 29% are over the age of 65. This aging population, coupled with a declining birth rate, is putting unprecedented pressure on Japan’s government and economy. Projections estimate that the population could shrink from its current 125 million to around 96 million by 2060. By that time, nearly 40% of the population will be over 65, a demographic scenario unparalleled in modern history.
Recognizing the urgency, the Japanese administration has initiated a quick and lighten movement towards solutions. Policymakers are implementing reforms at an accelerated pace to address the challenges posed by this demographic shift. Key strategies include providing (A) older citizens to participate (B) in the workforce and encouraging (C) incentives for women to remain (D) more actively in the job market. In tandem, efforts to modernize industries are being supported by technological advancements such as robotics and artificial intelligence, which are increasingly used to fill labor gaps in eldercare and manufacturing.
Despite these measures, the situation remains complex. Healthcare and pension costs account for approximately 30% of public expenditure, and sustaining the pension system is becoming increasingly difficult. By 2050, there will be nearly one retiree for every working-age person, a stark contrast to the 1970s when the ratio was 1:4. The administration’s lighten movement also focuses on incentivizing higher birth rates by investing in childcare subsidies, parental leave policies, and family support programs. However, societal preferences for smaller families persist, complicating these efforts.
Culturally, Japan’s historically restrictive stance on immigration continues to slow progress in diversifying the workforce. While immigration reform has been explored, achieving substantial change requires overcoming deep rooted societal resistance.
Japan’s quick and lighten movement reflects a determined approach to tackling this demographic crisis, but the road ahead demands multifaceted solutions and cultural shifts. The country’s experience serves as a global case study, offering lessons for nations facing similar demographic transitions.
If the trend of Japan’s population shrinking to 96 million by 2060 continues, what might be inferred about its global economic ranking?
- A.
Japan will likely maintain its economic position due to advances in automation and exports.
- B.
Japan’s economy may contract due to a reduced labor force and declining domestic demand.
- C.
The shrinking population will attract foreign investment to fill labor and productivity gaps.
- D.
Japan will experience sustained economic growth through technological leadership.
- E.
The demographic trends will have minimal impact on Japan's global economic role.
Show answer & explanation
Correct answer: B
Concept
An inference question asks for the conclusion that the passage's own evidence and tone most directly support. The valid answer must be grounded in what the text states or strongly implies; any option that contradicts the passage, adds outside assumptions, or downplays clearly stated pressures is wrong even if it sounds optimistic.
Applying it to the passage
The passage builds a consistently negative economic picture if the shrinking trend continues:
The population falls from 125 million to about 96 million by 2060, with nearly 40% over 65 — a shrinking, ageing workforce.
Healthcare and pension costs already take about 30% of public expenditure, and by 2050 there is roughly one retiree per working-age person (versus 1:4 in the 1970s).
Immigration remains restricted by deep-rooted societal resistance, and preferences for smaller families persist — so the labour gap is hard to refill.
A smaller working-age population means less production capacity, and an older, shrinking population means weaker domestic demand. Together these point to economic contraction.
Linking that to the stem's question about global economic ranking: an economy that contracts while other large economies keep growing would lose relative output, so its standing among the world's economies would tend to slip rather than hold or rise. The inference the passage supports is therefore that Japan's economy may contract due to a reduced labour force and declining domestic demand — which implies downward pressure on its global economic position.
Why the other readings do not hold
Claims that the economy will simply hold its position through automation/exports, keep growing through technological leadership, or feel minimal impact ignore the passage's explicit warnings about pension strain and a shrinking workforce — the text presents technology as a partial stopgap, not a guarantee of stability.
The idea that shrinkage will pull in foreign investment to fill the gaps runs against the passage, which stresses restrictive immigration and societal resistance slowing any diversification of the workforce.