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If the working-age population rises while total dependency falls, which economic outcome becomes more likely?

Answer and explanation

Correct answer: Opportunity for a demographic dividend

A demographic dividend is an opportunity for faster economic development that can arise when the working-age population forms a large share of the total population and relatively few people depend on it. Fewer dependents can allow households and governments to devote more resources to education, health, savings, and investment.

The opportunity is not automatic. It is most likely to produce higher output, incomes, and savings when workers have suitable jobs, skills, good health, and supportive economic policies. The question states that the working-age group is rising and total dependency is falling, which is the favourable demographic condition for this opportunity. It does not imply doubled child dependency, certain pension pressure, or disappearance of the labour force. Thus A is correct.

Related tags

Demographic DividendDependency RatioWorking Age PopulationEconomic OpportunityAge StructurePopulation CompositionGeographyClass 12 Mcq

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