If the elderly population is increasing but productivity of the working-age population is also rising, what effect may occur on the economic pressure of elderly dependency?

Correct answer: Higher productivity may offset some of the pressure

A growing elderly population can raise spending on pensions, health care, and support services. This creates economic pressure because each worker may need to support more older dependants. However, dependency pressure is not determined only by the number of elderly people. If the working-age population becomes more productive, each worker can produce more goods, services, and income, helping finance these needs.

Thus higher productivity may offset some, but not necessarily all, of the pressure. It cannot make elderly dependency disappear immediately, and it does not automatically reduce the elderly population. Productivity clearly has an economic effect, so option C is wrong. The word “some” in option A is important because the final outcome also depends on employment, wages, taxation, health costs, and pension arrangements.