If the working-age population of a country rises from 60 percent to 67 percent and employment grows at a similar pace, what is the most likely economic effect?

Correct answer: A likely increase in production and per capita income

A rising working-age share expands the potential labour force. If employment increases at a similar pace, more people can participate in productive activities, which can raise national output and per capita income. This is a basic condition for a demographic dividend, although productivity, skills and institutional quality also matter. Option B is incorrect because a larger working-age share generally reduces the relative proportion of dependents rather than necessarily increasing dependency. Age structure creates an opportunity, but productive employment and human-capital development determine whether that opportunity is realised.