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What can be one major economic consequence of an ageing age structure?

Answer and explanation

Correct answer: Increase in pension and health expenditure

An ageing age structure means that older people form a relatively large share of the population. Many older adults may need pensions, regular medical treatment, medicines, long-term care, or social assistance. As this group grows, governments and families may have to devote more money and services to retirement support and health care. The effect can be especially important when the working-age population is not growing fast enough to finance these needs.

Option A is correct because increased pension and health expenditure is a common economic consequence of ageing. This does not mean that every older person is dependent or that costs always rise in exactly the same way. The other options do not follow automatically: primary schools do not double, birth rates are not forced to rise, and the working-age group does not automatically increase merely because the elderly share is larger.

Related tags

Ageing PopulationEconomic ImpactPension ExpenditureHealth ExpenditureAge StructurePopulation CompositionGeographyClass 12 Mcq

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