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If a country's elderly population is increasing but productivity per worker is also rising rapidly, what may happen to the economic pressure of ageing?

Answer and explanation

Correct answer: Some economic pressure may be offset

The governing concept is that the economic effect of ageing depends not only on the number of older people but also on the resources generated by workers. A rising elderly share can increase spending on pensions, health care and support services. Rapid productivity growth, however, means that each worker may produce more goods, services and income. The additional output can help finance support for older people and partly offset the pressure created by ageing. It does not remove older people, reverse the age structure, or make the age-based dependency ratio zero. Therefore option B is the balanced conclusion. The other choices confuse economic mitigation with demographic reversal.

Related tags

Population AgeingProductivityEconomic DependencyElderly SupportAge StructurePopulation CompositionGeographyClass 12 Mcq

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