Which factor is likely to be of concern in a developed economy in the twenty-first century?

• A. High levels of illiteracy
• B. Rapid industrialization and urbanization
• C. Limited access to basic infrastructure
• D. Slowing population growth and aging demographics

Answer: (D)

Verified step by step guidance

1. Step 1: Understand the context of a developed economy in the twenty-first century. Developed economies typically have advanced infrastructure, high literacy rates, and established industrial sectors, so issues like high illiteracy or rapid industrialization are less common concerns.
2. Step 2: Analyze each option in relation to characteristics of developed economies: High levels of illiteracy and limited access to basic infrastructure are generally problems faced by developing economies, not developed ones.
3. Step 3: Consider rapid industrialization and urbanization. These are usually challenges for developing or emerging economies undergoing economic transformation, rather than for already developed economies.
4. Step 4: Focus on demographic trends in developed economies, which often include slowing population growth and aging populations due to lower birth rates and higher life expectancy.
5. Step 5: Conclude that the factor of concern in developed economies in the twenty-first century is slowing population growth and aging demographics, as these impact labor markets, social services, and economic growth potential.