A country has 64 percent of its population in the 15-59 age group, but female labour-force participation is very low. How can this affect the demographic dividend?

Correct answer: Part of the potential dividend may remain unrealised

The governing concept is that a favourable working-age share creates an opportunity, not an automatic dividend. Although 64 percent of the population is aged 15–59, low female labour-force participation means that a substantial part of the available human resource may not be engaged in paid work or measured economic production. This can reduce household income, output, tax revenue and the economy’s capacity to support dependents. Option A is correct because the potential benefit may remain partly unrealised. Option B is wrong: age structure alone cannot maximise a dividend. Option C is impossible because children and older people still exist, and option D confuses labour participation with the disappearance of elderly residents.