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If a country's working-age share is increasing but per-capita income remains stagnant, which conclusion is most appropriate?

Answer and explanation

Correct answer: A favorable age structure does not guarantee economic growth by itself

A larger working-age share can create a demographic dividend, because more people may be available to work and support production. However, this opportunity does not automatically produce higher income. People must have suitable jobs, education, skills, health, investment, technology, and effective institutions for the opportunity to become economic growth.

Here, the working-age share is increasing but per-capita income is not rising. This shows that a favorable age structure alone is insufficient. Other economic and social conditions may be preventing the potential benefit from being realized. Therefore, the most appropriate conclusion is that favorable age structure does not guarantee economic growth by itself. Option A is correct.

Related tags

Working Age SharePer Capita IncomeDemographic DividendEconomic GrowthAge StructurePopulation CompositionGeographyClass 12 Mcq

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