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If a country's population is ageing but productivity is rising very rapidly, what effect on per capita income is possible?

Answer and explanation

Correct answer: Per capita income may still rise

Population ageing can reduce the proportion of people in working ages, which may place pressure on the number of workers supporting dependants. However, per-worker output does not remain fixed. Better technology, education, skills, machinery, infrastructure, management, and capital can allow each worker to produce much more. If productivity rises rapidly enough to offset the effect of a larger elderly share, total income can grow faster than population and per capita income can increase.

Option A is correct because it says income may still rise, not that it must rise in every ageing country. Option B is clearly unsupported: ageing cannot make per capita income automatically zero. Option C is wrong because ageing and productivity can interact, even though productivity depends on more than age structure. Option D reverses the relationship; higher productivity does not make an older population young.

Related tags

Population AgeingProductivityPer Capita IncomeWorking Age PopulationAge StructurePopulation CompositionGeographyClass 12 Mcq

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