a) Link: https://www.prb.org/resources/china-aging-worlds-largest-population-older-people/b) Link: https://www.reuters.com/world/china/china-discourage-abortions-boost-low-birth-rate-2022-08-16/

Question One After approximately 40 years, the Chinese government's one-child policy ended in 2016. In 2021, the Chinese government announced that a married couple would be allowed to have as many as three children. There are many consequences of the one-child policy. For example, the Chinese government estimated that some 400 million births had been "prevented"; and after 1980s, the country's fertility rate and birth rate have been low, contributing to the rapidly growing elderly population and shrinking workforce. a) (8 Marks) China's economic development and urbanization have put the traditional family way of caring for senior adults to the test. Read the following article and analyze the labor market circumstance in China resulted from the one-child policy and the country's senior- care industry status. Include diagrams in your answers. https://www.prb.org/resources/china-aging-worlds-largest-population-older-people/ b) (10 Marks) According to Reuters, the Chinese authority decided to "discourage abortions and take steps to make fertility treatment more accessible as part of efforts to boost the country's birth rates". Use the labor supply and demand model to predict some possible consequences of this new policy in the short-run (say, 1 to 2 years) and medium-run (say, 10 to 15 years). Include diagrams in your answers. https://www.reuters.com/world/china/china-discourage-abortions-boost-low-birth-rate- 2022-08-16/ c) (5 Marks) A government official states that, "In order to increase the number of workers in the senior-care industry, the government should subsidize the workers in this industry." Do you agree? Explain in words and diagrams