In a certain state, the number of individuals age 65 or older has steadily increased with each passing year, while the number of individuals under the age of 18 has steadily decreased. Describe the likely effects on that state's economy if this trend continues.(1 point)

Question

a. This trend would have a detrimental effect on economic growth. There may be a labor shortage if too many people retire with not enough people to replace them, stagnating the economy.

b. This trend would have a detrimental effect on economic growth. This trend will ultimately lead to a much smaller population, meaning less consumers and less spending, stagnating the economy.

c. This trend would be beneficial to economic growth. People are living longer, meaning that they will be purchasing consumer goods for longer in their life, growing the economy.

d. This trend would be beneficial to economic growth. There will be more consumers with steady incomes, meaning more spending, which would grow the economy.

Answer 1

The correct answer is:

a. This trend would have a detrimental effect on economic growth. There may be a labor shortage if too many people retire with not enough people to replace them, stagnating the economy.

This option accurately reflects the concern that an increasing number of retirees without a sufficient younger workforce can lead to labor shortages, which can hinder economic growth and potential productivity.