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If population ageing is increasing while female labour-force participation is also rising, what economic effect may occur?

Answer and explanation

Correct answer: Some decline in labour supply may be offset

Population ageing can reduce the relative share of working-age people and increase the need for pensions, healthcare, and care services. If more women participate in the labour force, however, more adults can contribute to production, earnings, taxes, and the available workforce. This increased participation may partly compensate for the labour-supply pressure associated with ageing, although it may not remove every economic challenge.

Option A is correct because it states a possible partial offset. Ageing does not immediately end, and rising female participation does not necessarily increase youth dependency. Pensions do not become unnecessary; an older population may require greater pension support. The effect also depends on working conditions, childcare, retirement rules, health, wages, and whether suitable jobs are available, so “some” is appropriately cautious.

Related tags

Female Labour ParticipationPopulation AgeingLabour SupplyWorking-Age PopulationAge StructurePopulation CompositionGeographyClass 12 Mcq

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