Civics - Contemporary Society, Economy and International Relations
What this domain tests
How ageing, public finance, money and trade fit together, and how Japan works inside the United Nations and regional organisations. Expect one graph - an ageing curve, a trade balance, an exchange rate - with a reasoning question.
Society and welfare
Falling births and longer lives raise the dependency ratio. Social security rests on social insurance, public assistance, social welfare services and public health, with pensions, medical care and long-term care insurance at the centre. Fewer contributors supporting more recipients strains the system, which is why questions ask about raising the pension age or the consumption tax.
Public finance
Tax revenue covers only part of spending, so bonds are issued; outstanding national debt is very large relative to GDP. Distinguish bonds held domestically from foreign-held debt when asked about risk.
Money and trade
The Bank of Japan issues notes and acts as banker to the government and to private banks; it influences the economy through interest rates and the money supply. A weaker yen helps exporters and hurts importers and households buying imported energy. Trade theory rests on comparative advantage and international division of labour; firms also shift production abroad through direct investment.
International relations
The UN Security Council has five permanent members with vetoes; UNESCO, WHO, IMF, World Bank and WTO are specialised bodies. Regional frameworks include the EU, ASEAN and APEC. Environmental agreements include the Kyoto Protocol and the Paris Agreement, alongside the Sustainable Development Goals.
Worked example
If one dollar moves from 110 to 150 yen, a car priced at 3 million yen falls from about 27,000 to 20,000 dollars abroad - exports gain price competitiveness, while imported fuel and food cost more, hitting household budgets. That two-sided answer earns full marks.
Traps
Saying a strong yen helps exporters; confusing the IMF with the World Bank; and calling the Security Council's five members merely "members" rather than permanent ones with veto power.