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If the elderly population is rising while the working-age population is shrinking, which economic pressure is most likely to increase?

Answer and explanation

Correct answer: Pension and health expenditure burden per worker increasing

The governing concept is the old-age dependency burden within age structure. If the elderly population grows while the working-age population contracts, there are relatively fewer potential workers and taxpayers to support pensions, medical care and other social-security services. Consequently, expenditure per worker or the tax burden on each worker may rise, unless productivity, retirement policy or immigration offsets the change. Option B is not necessary: ageing societies often have fewer children, so primary-school demand may fall rather than double. Option C does not follow because youth unemployment depends on labour-market conditions, and option D has no direct demographic basis. Thus option A is the most likely pressure.

Related tags

Old-Age DependencyPension BurdenHealth ExpenditureWorking-Age PopulationAge StructurePopulation CompositionGeographyClass 12 Mcq

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