If child dependency is declining while the working-age population is increasing, what economic effect is possible?

Correct answer: Possibility of higher productive capacity

When the share of children falls and the working-age share rises, each worker may have fewer children to support. This can create an opportunity for higher production, income, saving, and investment. The opportunity is not automatic: it depends on good education, useful skills, health, employment, and suitable economic policies. Therefore, option A is the careful and correct answer.

A larger working-age population can contribute more labour and tax revenue, while reduced child dependency can lower pressure on households and public services. If jobs are unavailable or workers lack skills, the same population structure may instead create unemployment and social stress. School demand will not necessarily multiply, pensions will not immediately end, and fertility does not automatically rise. The likely possible effect is greater productive capacity when conditions are supportive.