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A country has a high working-age population share, but most people are in informal and low-productivity employment. What conclusion follows?

Answer and explanation

Correct answer: The economic potential of the favourable age structure is not being fully used

The governing concept is the demographic dividend: a large working-age share creates an opportunity, but it does not automatically produce development. If workers are concentrated in insecure, informal or low-productivity jobs, income, savings, tax revenue, skills formation and total output may remain limited. Therefore, option A is correct: the favourable age structure has economic potential that is not being fully converted into a dividend. Option B is too strong because the dividend has not been fully realised. Option C confuses population composition with productivity, and option D is wrong because dependency indicators remain useful for planning. Education, health, formal employment and productive investment are needed to use the opportunity.

Related tags

Demographic DividendInformal EmploymentProductivityWorking-Age PopulationAge StructurePopulation CompositionGeographyClass 12 Mcq

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