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In which age structure is the possibility of a demographic dividend the greatest?

Answer and explanation

Correct answer: When the working-age share is high and the dependent share is low

A demographic dividend is a possible economic benefit that occurs when the working-age population forms a large share of the total population while the shares of children and older dependents are relatively smaller. Fewer dependents can reduce the support burden per worker and may allow more resources for saving, education, health, investment, and productive employment. However, a favourable age structure alone does not guarantee a dividend; suitable jobs, skills, health, institutions, and policies are also necessary.

Option A is correct because it describes the age composition most favourable for this opportunity. If children dominate, many people still need support. If only elderly people are numerous, old-age dependency is high. Equal age groups with no employment cannot create an economic dividend merely through population structure. The key condition is a high working-age share combined with a low dependent share and the capacity to use the available labour productively.

Related tags

Demographic DividendWorking Age ShareDependency RatioAge StructurePopulation CompositionGeographyClass 12 McqRdgdfgdfg

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